Obama to impose tax on US firms' overseas profits to fund road projects
February 2 , 2015
President Barack Obama will use the 2016 US budget to impose a 14% one-off tax on American firms’ overseas profits and a 19% tax on future profits to fund road projects at home, the White House has said.
The $238 billion expected to be raised by closing this tax loophole is among the key proposals of the president’s budget, to be announced on Monday.
However, the spending plan is likely to run into a wall in the Republican-controlled Congress.
According to estimates, American companies have total profits of more than $2 trillion stashed abroad.