Sen. John Thune Wants Tax Reform To Fund Highway Infrastructure
The South Dakota Republican said he would consider several funding proposals, such as repatriation, to boost transportation as long as they are linked to tax reform.
“My view on repatriation: I think you can do that in the context of a broader tax reform effort,” Thune said at an event here Feb. 26.
Linking tax reform to funding transportation programs is gaining support in the halls of Congress. Many Republican leaders say they are for it, and several key Democrats are likely to endorse tax reform this year since the Obama administration has proposed using money from tax changes to fund a six-year highway bill.
Republicans also appear to back a one-time repatriation tax holiday. House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.) has endorsed the concept. And Rep. Paul Ryan (R-Wis.), chairman of the tax-writing Ways and Means Committee, has said a comprehensive tax overhaul was the way to boost the Highway Trust Fund for five or six years.
For Democrats, Rep. John Delaney of Maryland has been floating a measure that would create a $50 billion infrastructure bank funded by selling bonds to private companies that could repatriate part of their overseas earnings tax-free.
The current tax system allows companies to defer taxes until they bring back foreign profits. Many multinational firms keep or reinvest profits overseas instead of subjecting them to a 35% repatriation tax.
Funding authority for highway programs expires at the end of May.
For additional coverage of this event, see the March 2 edition of Transport Topics.
