Tax Holiday Said to Cost $96 Billion

Price tag announced as Senate discusses using repatriation tax break to fund highways.

A temporary tax holiday for U.S. companies to repatriate offshore profits would cost the government $95.8 billion in revenue over a decade, said the Joint Committee on Taxation, Congress’s nonpartisan scorekeeper.

Lawmakers occasionally talk about a repatriation tax break as a way to pay for spending such as replenishing the Highway Trust Fund. The estimate shows the difficulty of making such an argument.

Highway Fund

Senator Rand Paul, a Kentucky Republican, had -- in consultation with Majority Leader Harry Reid, a Nevada Democrat -- floated the idea of using his repatriation proposal, S. 911, to replenish the highway trust fund, according to a Senate Democratic aide who spoke on condition of anonymity. The trust fund may need a cash infusion as soon as July to reimburse states for road construction.

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