S&P Global (SPGI) is calling for a tax holiday on repatriated offshore earnings to put the $2 trillion in cash that U.S. companies have parked overseas to avoid paying taxes to work fixing the nation’s crumbling infrastructure. A recently released report from the company proposes a zero percent tax for a period of three years, provided companies invest 15 percent of the funds in interest-baring infrastructure bonds. These funds would then be used to help rebuild the nations critical arteries such as road, bridges, tunnels, ports, railroads and more. If half of the $2 trillion held overseas were brought back it would pump $150 billion into infrastructure projects, according to the report. Every dollar invested in transportation and infrastructure would add as much as $1.30 to the economy in a few years, and about 250,000 jobs would be created as a result of this one-time private stimulus, it found. Microsoft (MSFT), Apple (AAPL), Google (GOOG) and five other tech firms now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas, according to a Bloomberg News review of the securities filings of 304 corporations.
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