corporate taxes

Politics
12:33 pm
Thu May 16, 2013

Sen. Rand Paul Seeks to Cut Corporate Tax to Fund Transportation

U.S. Sen. Rand Paul (R-KY)

Through a single piece of legislation, Sen. Rand Paul is hoping to cut a corporate tax and get more revenue for transportation projects.

Here's how: When American companies make money overseas and put it in foreign banks, they have to pay a tax to bring the money back to the U.S.  Paul is sponsoring legislation that lowers the tax companies pay to transfer foreign profits to America from 35 percent to 5 percent. Many of those companies keep that money overseas instead of paying the 35-percent tax.

The new tax revenue generated under Paul's proposal would be put into a transportation fund, which could benefit projects including the Ohio River Bridges and the Brent Spence Bridge in Northern Kentucky.

A  lot of money is sitting overseas, and a lower tax rate would entice companies to bring it home, Paul spokesman Dan Bayens said.

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