Obama's budget would fix infrastructure through corporate taxes on foreign earnings
Under the President's plan, corporations would pay a one-time, 14 percent tax on earnings held overseas to raise an estimated $238 billion. This cash, along with money from the Highway Trust Fund, would pay for $478 billion in infrastructure improvements over the next six years. At about $79.7 billion per year, the figure works out to more than Congress allocates currently, according to Vox. President Obama has been refining this plan for several months and first suggested ending some tax breaks on businesses to pay for repairs in April 2014.
There seems to be some chance of this part of the budget or a tweaked version of it getting through Congress. Republican and Democrat members agree that there needs to be greater investment in infrastructure. The question is how to pay for it. According to Vox, there are other ideas under consideration to fix things, too. Senators Rand Paul and Barbara Boxer suggest a tax holiday to allow companies to bring earnings back to the US and have that money taxed at just 6.75 percent. Representative John Delaney has a plan similar to President Obama's but at an 8.75 percent rate, which would keep the current funding levels through the next six years.
Of course, the other solution would be to raise the gas tax to a sustainable level keep the Highway Trust Fund going. Such a move is also being suggested, and 51 percent of Americans claim they would vote for a candidate who supports such an increase.
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