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
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
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.