WASHINGTON, D.C. – (RealEstateRama) — Writing on the need for international tax reform in the Wall Street Journal Congressman John K. Delaney (MD-6) and Congressman Richard Hanna (NY-22) have called for congressional leadership to focus on a bipartisan solution that pairs tax reform with increased infrastructure investment. The letter was written in response to Treasury Secretary Jack Lew’s op-ed on the flawed international tax system.
Congressman Delaney is the author of the bipartisan Infrastructure 2.0 Act, which uses revenues from international corporate tax reform to expand the Highway Trust Fund and create a new national infrastructure fund to finance state and local projects, creating millions of new jobs.
The Delaney/Hanna letter is available online here and copied below:
We agree with Treasury Secretary Jacob Lew’s diagnosis of our flawed international tax system (“Europe’s Bite Out of the Apple Shows the Need for U.S. Tax Reform,” op-ed, Sept. 13) and we agree, directionally, with his description of the proper solution. We encourage the secretary and congressional leadership to focus on our bipartisan Infrastructure 2.0 Act. The way to get this done is to combine international tax reform with infrastructure investment. The $2 trillion of existing overseas earnings would be “deemed” repatriated and subject to a minimum tax of 8.75% (less any tax already paid) and on a “go forward” basis, deferral would end and the rate would be 12.25% for profits in low-tax jurisdictions with deductions for taxes already paid.
This bipartisan approach generates $170 billion of revenue that would be applied to our nation’s infrastructure and creates a new national infrastructure fund that would provide an additional $750 billion in financing to state and local governments. The urgency of this problem demands embracing a smart, practical plan that has bipartisan support, like the Infrastructure 2.0 Act. This is the only way to actually make progress.
Rep. John K. Delaney (D., Md.)
Rep. Richard Hanna (R., N.Y.)