President Barack Obama will propose raising $238bn by levying a one-off tax on the cash piles held by US companies overseas to repair the US’s crumbling roads and bridges.
The measure, a key plank of the president’s budget to be outlined on Monday, would impose a 14 per cent “transition” tax on the estimated $2tn in earnings US companies have amassed overseas, the White House said on Sunday.
The FT story is here, Vox is here. Part of the plan also involves replacing the 35 percent rate — which many large corporations avoid — with a 19 percent flat rate which would apply to foreign earnings as well.
And what might these taxes eventually go to pay for? Matt Yglesias reports:
…there’s an emerging Democratic consensus over what’s next — children and family policy. There are a few different threads to this, including early childhood education, special tax benefits for working moms, child care subsidies, and paid sick leave and maternity leave.