Updated: E&ENews is reporting of revived bi-partisan efforts in the House to introduce new bills to fund infrastructure spending.
“Rep. Peter DeFazio (D-Ore.), the ranking member on the Transportation and Infrastructure Committee, introduced legislation to raise the gas tax by around a penny a year. The bill, H.R. 1664, would generate around $500 billion to rebuild U.S. roads, bridges and transit systems through 2030.
“DeFazio said he had shared the proposal with D.J. Gribbin, who has been organizing White House talks on the infrastructure package. The White House hasn’t told him no yet, he said.
“The Oregon Democrat said he hoped support from [President] Trump for the idea could sway Republican congressional leadership, including Rep. Bill Shuster of Pennsylvania, the top Republican on the Transportation and Infrastructure Committee.
Accounting Today gives another breakdown of the two bills introduced:
“One of the bills, co-sponsored by Rep. Rodney Davis, R-Ill., is called the Partnership to Build America Act. It would create an American Infrastructure Fund to finance state and local infrastructure projects, capitalized through a one-time $50 billion bond sale to U.S. corporations looking to repatriate part of their international earnings. The fund could be leveraged at a 15:1 ratio to provide up to $750 billion in loans or guarantees to state and local governments for infrastructure projects.
“The other bill, co-sponsored by Rep. Ted Yoho R-Fla., is known as the Infrastructure 2.0 Act. Originally introduced by Delaney in 2013, it too would create the American Infrastructure Fund, as well as provide extra revenue to expand the Highway Trust Fund using international tax reform. Under the Infrastructure 2.0 Act, U.S. multinationals’ existing foreign profits would be subject to a one-time tax of 8.75 percent, replacing the tax deferral option and the current top corporate tax rate of 35 percent.
“To encourage action, the legislation includes a forcing function, so if more comprehensive tax reform is not enacted by Congress, a fallback international tax reform package would take effect. Under this option, for active-market foreign income, companies would pay a 12.25 percent tax to the U.S. on overseas profits if they are currently paying no tax, and a 2 percent tax to the U.S. if they are already paying an average of 25 percent abroad, with a sliding scale in between.
BondBuyer.com has this:
“The legislation was filed as a new study by Moody’s Investors Service forecasts a slow ramp up to increased federal infrastructure spending due to a lack of bipartisan agreement over funding mechanisms and how to implement a massive infrastructure program.
“Moody’s expects additional infrastructure spending to be modest in 2017 and 2018 despite calls by President Trump and Senate Democrats for $1 trillion over 10 years of new funding in separate proposals, said AJ Sabatelle, a managing director at Moody’s and the lead author of the report.
Key reasons to keep an eye on the healthcare reform bill [UPDATE: oh well]. Onward to tax reform.