President Obama is expected to reveal a plan to tax offshore profits to fix the U.S.’s infrastructure.
Obama will propose a mandatory 15 percent tax on corporate profits kept abroad in order to fix roads, bridges and other infrastructure around the nation, according to a White House document obtained by Politico.
The proposal will impose taxes on the $2 trillion in profits kept outside the U.S. to “make critical new investments in our roads, bridges, transit systems and freight networks as part of a $478 billion, six-year surface transportation reauthorization,” according the plan’s summary.
Hiking taxes on capital gains as well as ending a loophole that benefits wealthy when their heirs inherit there assets will also be proposed.
Obama will also push to lower the top corporate tax rate from 38 to 35 percent, while also suggesting a new 19 percent minimum tax on global profits.
“Unlike a voluntary repatriation holiday, which the president opposes and which would lose revenue, the president’s proposed transition tax is a one-time, mandatory tax on previously untaxed foreign earnings, regardless of whether the earnings are repatriated,” the White House document says.
This year’s proposal will also include a $176 billion increase in spending on federal highway and transit programs.
CORRECTION: An earlier version of this story misstated the top corporate tax rate. The Washington Examiner regrets the error.
