InfrastructureLawmaker offers a way to finance U.S. infrastructure investment -- with no taxpayers’ money
Representative John Delaney (D-Maryland) says has an answer to the nation’s infrastructure problems, and that it will not cost taxpayers a dime. The money will be raised through the sale of special bonds, not guaranteed by the government, to companies that earn profits outside the United States.
Rep. John Delaney (D-MD) has an innovative idea to fund infrastructure repair // Source: wsdot.wa.gov
Representative John Delaney (D-Maryland) says has an answer to the nation’s infrastructure problems, and that it will not cost taxpayers a dime.
MSNBC reports that Delany, a member of the House Financial Services Committee and the only former CEO of a privately traded company currently in Congress, introduced legislation earlier this week which aims to fix the nation’s infrastructure with money raised through the sale of special bonds to companies that earn profits outside the United States. The bonds allow companies to bring overseas earnings back to the U.S. tax free, but the bonds are not guaranteed by the government and have very low interest rates.
Last year U.S. companies earned $1.9 trillion abroad, meaning the bonds can be an attractive and legal way to reduce their tax bills.
The deterioration of infrastructure in the United States was highlighted last week when a bridge in the state of Washington collapsed, sending three people to the water below. The American Society of Civil Engineers gave U.S. infrastructure a D in its 2013 report card, and reported that a $3.6 trillion investment in infrastructure will be needed by 2020.
Delaney said the bill “could finance up to $750 billion worth of infrastructure projects in the United States.”
“This is a quintessential innovative financing vehicle,” Delaney told NBC.. “This will be another, fairly large, robust tool in the toolkit.”
