By Gabe Griess
I have an idea, let’s unleash our economy with massive infrastructure expansion and replacement. Rebuilding roads, bridges, expanding commuter rail, connecting all houses and businesses to high-speed internet, growing renewable energy and investing in cutting-edge water conservation and desalination technology.
Won’t that be expensive, some will ask? Absolutely, and that’s the point. The capital injection will expand good paying jobs, stimulate the economy and put in place the infrastructure needed to grow the economy for the next 50 years. And here’s the kicker, let’s do it while simultaneously relieving tax pressure.
Crazy talk right? No.
Today, U.S. corporations have more than $2 Trillion in profits sitting on foreign shores. A recent report from Bloomberg News Review claimed that Microsoft, Google, Apple and five other tech firms now account for more than a fifth of the profits being held overseas. Ideally, companies would bring those profits home but they are facing nearly 45% tax to repatriate the funds.
I propose partnering with the federal government to allow U.S. corporations to bring those profits home and fulfill their tax obligation by funding 7-year infrastructure bonds. When the bond matures the city, state, or agency will repay the company the full principle and their State and Federal tax obligation will be fulfilled.
This is a win-win!
Shouldn’t we hold these corporations accountable? Make them pay their fair share. California and America need this type of massive capital infusion today and there is no excess money in anyone’s budget.
So let’s have a public-private partnership that creates a solution to our infrastructure challenges, improves quality of life, creates great jobs and power our economy. With an expanding job market, booming construction and foundation of the next generation of business expansion, there will be relief from current tax burden.
Gabe Griess is a retired Lt. Col and a candidate for the State Senate District 3