Obama Proposes One-Time 14% Tax on Overseas Earnings - WSJ

WASHINGTON—President Barack Obama is making an opening bid on overhauling corporate taxes and linking it to boosting infrastructure spending, a move that could clear a rare path toward common ground in a deeply divided capital.

Mr. Obama wants U.S. companies to pay a 14% tax on the approximately $2 trillion of overseas earnings they have accumulated, a White House official said Sunday. They would face a 19% minimum tax on future foreign profits. Companies could reinvest those funds in the U.S. without paying additional tax.

In making the pitch in his 2016 budget plan due Monday, the president is elevating two issues that previously gained traction with lawmakers of both parties: changing the tax code on overseas profits and raising spending on highways and transit systems.

Doug Holtz-Eakin, a conservative economist and former adviser to GOP presidential candidates, said the proposal appears to be a starting point for broader negotiations with lawmakers.

“The good news seems to be that the administration has agreed that lockout [of overseas profits] is an important phenomenon,” said Mr. Holtz-Eakin, president of the American Action Forum, a conservative think tank. He said he is concerned about the proposed tax-rate structure. “But let’s face it, it is an opening bid, not a result,” he added.

Gene Sperling, a former top economic adviser to Mr. Obama, said criticism over where to set the rates should be taken in stride. “When people are putting out numbers, you’re opening up a process for negotiation,” he said.

Gene Sperling, a former top economic adviser to Mr. Obama, said criticism over where to set the rates should be taken in stride. “When people are putting out numbers, you’re opening up a process for negotiation,” he said.  Read More at Obama Proposes One-Time 14% Tax on Overseas Earnings

Obama Opens Bidding on Corporate Taxes