IN SUPPORT OF REPATRIATING CORPORATE EARNINGS TO BUILD INFRASTRUCTURE IN THE UNITED STATES

WHEREAS, The United States Conference of Mayors has always shown a strong commitment to investment in United States infrastructure, which creates jobs and improves communities; and

WHEREAS, according the research firm Audit Analytics, US Corporations increased their offshore earnings last year by 15% to a record $1.9 trillion; and

WHEREAS, according to the 2013 Report Card for America’s Infrastructure, U.S. Infrastructure has a cumulative grade of “D+” with an estimated $ 3.6 trillion investment needed by 2020; and

WHEREAS, Congress has introduced legislation like the Partnership to Build America Act that would finance the rebuilding of our country’s transportation, energy, communications, water, and education infrastructure through the creation of an infrastructure fund using repatriated corporate earnings as well as through utilizing public-private partnerships; and

WHEREAS, such legislation would create the American Infrastructure Fund (AIF) which would provide loans or guarantees to state or local governments to finance qualified infrastructure projects; and

WHEREAS, AIF will be funded by the sale of $50 billion worth of Infrastructure Bonds which would have a 50-year term, pay a fixed interest rate of 1 percent, and U.S. corporations would be incentivized to purchase these new Infrastructure Bonds through the repatriation of corporate earnings; and

WHEREAS, the AIF would leverage the $50 billion of Infrastructure Bonds at a 15:1 ratio to provide up to $750 billion in loans or guarantees; and

WHEREAS, legislation like this would provide increased resources for financing of infrastructure, while not contributing to the federal debt; and

WHEREAS, such legislation is estimated to provide a path for approximately $200 billion, or 10 percent of corporate earnings to return to the United States,

THEREFORE BE IT RESOLVED, that The United States Conference of Mayors supports efforts like these in the Partnership to Build America Act that would provide competitive financing to improve infrastructure in the United States through the repatriating of corporate earnings; and

BE IT FURTHER RESOLVED, that support for this or similar legislation should not be used in any way to replace or undermine the full federal funding infrastructure projects or tax exempt status for municipal bonds which are vital tools in improving infrastructure in the United States.