Regarding the Jan. 21 news article “Bipartisan traction on infrastructure bill”:
If paying for infrastructure by giving large corporations a tax break doesn’t make sense at first blush, it doesn’t get any better with further scrutiny. The bill proposed by Rep. John Delaney (D-Md.) would give corporations a massive tax break on profits they’ve booked offshore. Taxpayers end up picking up the tab for the estimated $90 billion a year lost from corporations gaming the system using tax havens.
Sure, the bill could provide some short-term revenue for infrastructure, but in the long run, tax holidays lead to more offshore tax dodging. Companies know that if they lobby hard enough, they can get another break down the road. That’s why the nonpartisan Joint Committee on Taxation has predicted that tax-holiday proposals would lose revenue in the long term.
More tax dodging means less funding for infrastructure investment. It also means an unfair playing field for small businesses and a larger burden for ordinary taxpayers, who will have to make up the difference through higher taxes or suffer cuts to public programs. Congress should reject this proposal.
Dan Smith, Washington
The writer is tax and budget advocate at the U.S. Public Interest Research Group.