With Burger King and Tim Hortons moving forward with a merger that would shift the American fast-food chain’s headquarters to Canada, a new wave of conversation has come up about a practice used by many corporations to avoid paying U.S. taxes. The tactic is called ‘corporate inversions’ and it is estimated that the practice costs America a lot of money. But what if some kind of program could be set up that would allow companies to bring that money back home while also allowing them to see a more direct return? More from Next City:
One could imagine Apple and Facebook would be very interested in helping speed up the creation of a high-speed rail system that connects San Francisco to Los Angeles. That Coca-Cola and Starbucks would see the value in improving the country’s water infrastructure. Or that Ford and GM would see the benefit in better roads and bridges.
Currently the stockpile of cash held abroad to avoid American taxes is estimated to be $1.95 trillion. What if instead those profits were brought back to the U.S. with a percentage invested in infrastructure? At just two percent, this deal could pay for all of the country’s currently deferred maintenance.