A lot of people have proposed that Congress create an infrastructure bank that would fund or finance the reconstruction and expansion of America’s transportation and other infrastructure. One problem is where the money would come from. Another problem is how would it be allocated.
Representative John Delaney (D-MD) thinks he has the answers to these two questions. He notes that, for tax reasons, American corporations have kept billions of dollars in foreign profits overseas so they don’t have to pay U.S. taxes on them. He proposes to drastically reduce the rate they would pay on this income, leading them to bring the funds back. The revenues from the lower rates (he proposes about 8 percent) that would then be paid would seed what he calls the American Infrastructure Fund.
