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Obama's big budget idea: Tax corporations to fund our roads

Posted by Matti Miranda on February 09, 2015 at 9:58 AM

Investment in the nation's highways is a large part of the recent budget proposed by President Obama. Read about this proposal here, from Brad Plumer published on February 2, 2015 for Vox. 

  1. In his new budget, Obama is proposing to spend $478 billion over the next six years to upgrade America's roads, bridges, transit, and freight.
  2. He wants to pay for this by raising $238 billion from a one-time tax on companies holding cash abroad. This is part of his new corporate tax-reform proposal.
  3. Obama's plan is designed to temporarily patch a huge flaw in US transportation policy: the federal gas tax isn't high enough to cover highway spending, and Congress is reluctant to raise the gas tax.
  4. Some members of Congress have floated a different approach: give corporations a tax holiday to bring overseas profits back home — which, they say, could also raise revenue to pay for highways.
  5. In the past, Obama has been opposed to such holidays, arguing they would actually lose money in the long run. So expect more fighting over this.

Read the full story here: