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View Diary: Obama nails it on why we need to invest in America's infrastructure—and why it's not happening (182 comments)

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  •  Try getting that one through Congress (0+ / 0-)

    I don't think a majority of Democrats in the House and Senate would support your idea. It doesn't matter if the rate is 35% or 50% the cash isn't coming back. It would irrational for any multinational company to bring the cash back to the US under current tax law. It's going to take a significant change in the corporate tax code to lure that cash from OUS. The cash will come back using carrots, not sticks.

    "let's talk about that" uid 92953

    by VClib on Thu Jul 03, 2014 at 01:24:00 PM PDT

    [ Parent ]

    •  An ACA type approach is what is called for. Off... (0+ / 0-)

      An ACA type approach is what is called for. Offer them the ability to bring back the money onshore at a discounted rate (15%?), and if they fail to do so their regular tax rate starts going up for each year that they don't. In the same way that you can either pay the "fine" for not having health insurance or accept a subsidy (in most cases) and buy health insurance so that you're part of the solution to the problem.

      •  Trenchman - I don't think a majority of Democrats (0+ / 0-)

        would like your idea. The companies owe no tax on the OUS earnings until they bring it back to the US. They have every legal right to keep the cash offshore and invest it anywhere else in the world. What Congress needs to do is craft a carrot, not a stick to bring the money back to the US. I don't think there is any consensus in Congress to try and collect higher taxes on OUS earnings from years past. Any change will impact tax years in the future.

        "let's talk about that" uid 92953

        by VClib on Fri Jul 04, 2014 at 09:03:15 AM PDT

        [ Parent ]

    •  Federal Infrastructure Bank. (0+ / 0-)

      Concept:

      Create Federal Infrastructure Bank and fund it with repatriated corporate offshore cash.

      Each year the corp. leaves the money in the FIB, 20% of the tax is waived. Leave the money in the FIB for 5 years, then all taxes are waived.

      The FIB will use those funds for infrastructure improvements. FIB could either use the corporate funds directly...with direct loans.....or could further leverage those funds for even greater infrastructure improvements.

      Loans would be repaid from increased tax revenues created via the infrastructure construction projects and then improved economic activities.

      In 5 years, offshore cash would be fully repatriated.

      "I did not have sex with that bridge"

      by Scottsdalian on Fri Jul 04, 2014 at 07:31:37 AM PDT

      [ Parent ]

      •  Scott - the concept is interesting (0+ / 0-)

        An interest free loan to the US to use for infrastructure, totally voluntary.

        I LIKE IT!!!!!!!!!!

        "let's talk about that" uid 92953

        by VClib on Fri Jul 04, 2014 at 09:05:12 AM PDT

        [ Parent ]

        •  It's not interest free loan. Businesses are buying (1+ / 0-)
          Recommended by:
          VClib

          down the cost of repatriating offshore money without paying "taxes".

          It's a concept, not a detailed proposal. Feel free to include ideas to better this concept.

          Need: $2-3 Trillion Cash for infrastructure
          Have: $2-3 Trillion Cash available for repatriation.

          Any way we could match up our Need with our Have? This is my/Obama's concept.

          What's your proposal?

          "I did not have sex with that bridge"

          by Scottsdalian on Fri Jul 04, 2014 at 10:14:58 AM PDT

          [ Parent ]

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