Tallahassee Journal

Obama to propose a $478 billion road and bridge program

Obama to propose a $478 billion road and bridge program

President Obama’s budget proposal Monday includes a six-year $478 billion program to build and upgrade roads, bridges, and other transit systems, to be financed by a one-time tax on overseas profits, the White House said Sunday. “These investments will increase infrastructure funding by over a third, support hundreds of thousands of American jobs, and lay the foundations for long-term economic growth,” said a White House statement.barack-obama

As for financing, the White House said the budget will call for “a one-time 14% transition tax on the up to $2 trillion of untaxed foreign earnings that U.S. companies have already accumulated overseas.” The White House also said that, as part of an overall tax reform plan, Obama will call for closing “loopholes that allow U.S. companies to shift profits to tax havens and avoid paying tax on them for years — or forever — by requiring them to pay a 19% U.S. tax on all of their foreign earnings as they earn them.

“It would be part of a broader administration plan to overhaul corporate taxes by ending certain tax breaks and lowering rates, a challenging task that Obama and Republican congressional leaders insist they are poised to tackle this year.

“Obama’s budget proposal for the fiscal year that begins Oct. 1 will offer an array of spending programs and tax increases that Republicans now running Congress have already dismissed as nonstarters.”