A $1,000,000 Treasury bond, which is the model for RIBs. APRIL/MAY 2017 | MassTransitmag.com | Mass Transit | 21 $500 billion which translates into lost American factories and jobs. Th e antiquated U.S. tax code discourages multinational corporations from remitting the earnings to the U.S. to invest in factories, infrastructure and jobs. With one-sided trade policies, the archaic U.S. tax code, and the entrance of China, now a manufacturing powerhouse, into the World Trade Organization (WTO), it is not surprising that the percentage of corporate profi ts earned off shore since 1990 has more than doubled to more than 35 percent and that factories have been moved to outside the United States. Th is should in no way be construed as an endorsement of VAT. It too has issues, most notably that it is far too easy to raise VAT rates with little to no oversight. Lowering U.S. federal business income tax rates to the 15 to 20 percent range is a good fi rst step. Next step is a border adjustment tax that adds a tariff to imports. Th at tariff would vary by country, and would be at least as large as the VAT rate applied to U.S. products exported to that country. Such actions will level the playing fi eld, greatly improve U.S. international competitiveness and reduce the crippling trade defi cit. Incenting Companies to Repatriate Foreign Earnings with RIBs Th e unfavorable tax situation will require a permanent fi x, but short term, there are some actions that can be taken. Th ese actions can eventually be rolled into tax code overhaul legislation. Th is proposal is to create a new fi nancial instrument called a repatriation infrastructure bond (RIB) to facilitate remittances. RIBs would be United States government backed securities, with the characteristics of Treasury bonds (T-bonds). Term would be from 30 to 50 years, available in $1 million denomination. Interest rate would be comparable to T-bonds. Redefining Transit Interiors and Exteriors High-performance thermoplastic sheet for forward-thinking designs in exterior and interior applications. Created through collaboration and product innovation. Compliant Lightweight Durable Recyclable Graffiti resistant Integral finish & color Contact us today. Our experts will guide you through material selection, design, and delivery. sekisui-spi.com 1.800.325.3133 For more information, visit www.MassTransitmag.com/10066527
MassTransit_AprilMay_2017
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