James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Federal Business Tax Overhaul Could Fund Infrastructure Projects
Author: James F. McDonough
Date: March 11, 2014
Key Contacts
Back
President Barack Obama recently announced a four-year, $302 billion transportation bill to repair the nation’s aging roads, rails, bridges and tunnels. According to The New York Times, one method Obama plans to use to fund this initiative is a business tax overhaul.
In the State of the Union Address, Obama said he would use the money from the tax changes to “create jobs rebuilding our roads, upgrading our ports, unclogging our commutes, because in today’s global economy, first-class jobs gravitate to first-class infrastructure.”
The proposal would help avoid repeated short-term extensions that many construction projects have experienced in recent years, and would help protect 700,000 jobs, according to USA Today.
Changes to b that would help fund the infrastructure projects would include closing tax loopholes, lowering tax rates and making the corporate tax system more fair, the Department of Transportation said.
Some businesses may not be happy with the government closing tax loopholes, as this could mean they have higher tax bills. However, lowering rates could help ease the pain of this move.
Raising the gas tax was also explored, but Obama believes the corporate tax overhaul should be enough to fund the projects. The gas tax currently sits at 18.4 cents per gallon, and hasn’t been increased since 1993. This brings in about $39 billion annually, which, alone, isn’t enough to fund infrastructure projects.
One of the biggest benefits that could be experienced by this move is the protection of jobs. The White House said more than 700,000 jobs could be put in jeopardy is these projects aren’t properly funded.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.