Thu Feb 21, 2013, 01:46 PM
elleng (70,253 posts)
Delaney to Introduce Infrastructure Funding Legislation!!!
•Creates a large scale funding capability for rebuilding transportation, energy, communication, water and educational infrastructure using a disciplined public-private partnership model;
•Helps working families by putting Americans to work and improving overall U.S. competitiveness;
•Creates a path for repatriation of overseas corporate earnings in a manner that ensures American job creation; and
•Timing of legislation inspired by President Bill Clinton’s comments at the Democratic Issues Conference.
WASHINGTON – Congressman John K. Delaney (MD-6) announced today that he will introduce legislation creating the Office of Infrastructure Investment and the American Infrastructure Fund.
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Delaney to Introduce Infrastructure Funding Legislation!!! (Original post)
Response to elleng (Original post)
Thu Feb 21, 2013, 02:08 PM
catnhatnh (8,902 posts)
1. Read closely-it's a scam...
For each $1 of "investment" the purchaser can "repatriate" $4 in off-shore profits. Even at a 25% tax rate the purchasing corporation gets an essentially free $1 bond plus interest. At the supposed 35% rate the rest of us are PAYING these thieving bastards 40 cents plus normal interest on each dollar of bonds purchased.
Response to catnhatnh (Reply #1)
Thu Feb 21, 2013, 02:25 PM
elleng (70,253 posts)
2. SORRY you're not pleased that there is A mechanism.
'Our bill will combine investments by U.S. corporations, for which they obtain a tax-credit for overseas earnings repatriation, with low-cost funding and project specific private investment to help build the backbone of our country for the future . . .
Requires projects be partially funded with private capital procured through a competitive procurement process using standardized procedures and documentation developed by the Office of Infrastructure Investment;
Provides that the American Infrastructure Fund be funded by selling both Junior Infrastructure Bonds not guaranteed by the U.S. government and Senior Infrastructure Bonds that will include a guaranty of the U.S. government;
The Junior Infrastructure Bonds will pay a rate less than the Senior Infrastructure Bonds and be freely tradable. The Junior Infrastructure Bonds will be the “first loss” and represent a minimum of 5% of the assets of the American Infrastructure Fund (or more depending upon activities). Assets of the American Infrastructure Fund include the total of loans or outstanding guaranties;
Provides that Congress approves the amount of Junior Infrastructure Bonds that may be offered from time-to-time and thereby control the size of the American Infrastructure Fund; and
For every $1 dollar of Junior Infrastructure Bonds purchased, the purchaser may repatriate $4 dollars of overseas corporate earnings tax-free.
Benefits of the proposed bill:
For every dollar of tax credit produced under the program, the American economy will receive a significant multiple of infrastructure investment; . . .
Creates a path for some of the estimated $1.7 trillion of overseas earnings to return to our shores and further stimulate our economy while ensuring high quality American jobs will be created in the process;
Limits the risk of allocating funding for anything other than rational economic development reasons since the federal government does not select the projects and states and private investors share risk in the viability of the project;
It is taxpayer friendly as it requires no appropriations and involves structuring the American Infrastructure Fund in a safe and sound manner with significant risk based capital and limited lending parameters;
Creates a framework for public-private partnerships at the project level that can create investment opportunities for pension funds looking for investment opportunities.