Obama eyes US$478 billion infrastructure spend

[WASHINGTON] President Barack Obama's budget being released Monday will include proposals to spend US$478 billion (S$646.4 billion) on improving creaking infrastructure, paid for by a tax on money US firms hold overseas.

"The president will propose a significant investment to repair our crumbling roads and bridges, and modernize our infrastructure so businesses can create good jobs here at home," a White House official said on Sunday.

The one-third increase in infrastructure spending would be paid for, in part, by a one-time 14 per cent tax on cash US businesses park overseas to avoid tax.

"This transition tax would mean that companies have to pay US tax right now on the US$2 trillion they already have overseas," the official said.

Republicans who control the House of Representatives and the Senate are likely to view that as an anti-business tax hike, which they have vowed not to make law.

AFP