President Barack Obama proposed a 14 percent tax on overseas profits that would raise $238 billion over six years and create a $478 billion infrastructure budget, the National Stone, Sand & Gravel Association reports.
“This transition tax would mean that companies have to pay U.S. tax right now on the $2 trillion they already have overseas, rather than being able to delay paying any U.S. tax indefinitely,” a White House official said. The official also said the tax would encourage firms to create more jobs in the U.S.
According to the White House, the $238 billion would be used to fund a broader $478 billion public works program of road, bridge and public transport upgrades. The remaining $240 billion would come from the federal Highway Trust Fund, which is financed by gas taxes, NSSGA reports.
“The aggregates industry welcomes the president’s proposal because it focuses much needed revenue to rebuild our nation’s crumbling infrastructure,” says Michael Johnson, president and CEO of NSSGA.”While this approach avoids some of the political difficulties that many other measures face, it will be an uphill struggle to get it through Congress.”
