Sen. Sherrod Brown pitches plans to tackle offshore tax havens, rebuild nation’s highways

U.S. Sen. Sherrod Brown, appearing Friday at the City Club of Cleveland, said the United States has to again understand that money that targets road and bridge development and other infrastructure improvements is an investment. “Our parents left us with a transportation system and an infrastructure that was the envy of the world,” Brown said. “We recognized government investment benefits all of us.” (Robert Higgs, Northeast Ohio Media Group)

CLEVELAND, Ohio – U.S. Sen. Sherrod Brown outlined a plan Friday that would tackle two issues he views as problems: American corporations moving profits off shore and the upkeep of the nation’s highway system.

The goal, the Ohio Democrat said, is to eliminate the attraction of offshore tax havens that don’t tax corporate profits while at the same time raise money needed to repair and improve the nation’s failing infrastructure.

“I think it says all you need to know about our infrastructure when we refer to Dead Man’s Curve or Collision Bend,” Brown said, referring to a curve along Interstate 90 and a bend in the Cuyahoga River.

Brown also touched on a variety of other topics as he took questions from the audience. Here’s five things to know from his appearance.

Bringing back the cash

Brown said he is working with Democratic Sens. Mark Warner of Virginia and Charles Schumer of New York to address offshore profits.

Their plan would involve retroactively taxing American corporations on profits earned in the U.S. but sheltered for years to tax havens, like the Cayman Islands or the Bahamas. The rate still has to be negotiated. Future profits sent to those tax havens also would be taxed.

Corporations with operations in other countries would be given a U.S. tax credit for any foreign taxes they paid.

Brown said he’s hopeful that a deal can be worked out to eliminate incentives for companies to move their profits and jobs overseas.

“We all know that our tax code is broken,” he said.

He acknowledged, though, that such a deal would also have to navigate through the U.S. House of Representatives. And a large majority of Republican members of Congress have signed a pledge pushed by Grover Norquist and Americans for Tax Reform to not raise taxes.

Rebuilding the highways

If the tax deal can be worked out, it would raise about $2 trillion for use on rebuilding and expanding America’s highway system over six years, Brown said.

“Every politician pays lip service to doing something about infrastructure,” Brown said.

He cited highway data, which showed that a quarter of the state’s bridges were deficient. Other states have similar problems, he said.

Because of the Norquist pledge, getting new taxes to pay for road work would be difficult. The federal excise tax on gasoline, which raises money for road and bridge construction, has remained at 18.4 cents per gallon since 1993.

Something needs to be done, Brown said. The upgrades to the highway system are needed and the work would drive jobs across the nation, he said.

“Our parents left us with a transportation system and an infrastructure that was the envy of the world,” Brown said. “We recognized government investment benefits all of us.”

A House in turmoil

Brown said he takes no glee from watching Republicans squirm over leadership of the House.

This week. Rep. Kevin McCarthy, a California Republican and House Majority Leader, stunned his caucus when he unexpectedly said he would not seek to replace retiring Speaker of the House John Boehner.

Boehner, facing heat from the Tea Party wing of the Republican caucus, surprised many when he announced last month he would leave the speaker’s post and his seat in Congress by the end of October.

With McCarthy backing out, political observers are left guessing who will be the next speaker.

Brown said one solution is make the process of drawing congressional districts less political. That would result in the election of more centrist candidates and ease the political tug of war and polarization.

“I just think the country has got to get serious about redistricting,” Brown said.

Guns and violence

In the wake of recent shootings at college campuses in Oregon and Arizona, Brown fielded questions about what should be done.

He urged tightening of some of the nation’s gun laws, such as requiring stronger background checks before someone can buy a gun.

In many states, he said, the process to license cars is much more rigorous than the licensing of firearms. And while the Consumer Product Safety Commission regulates product safety, it does not deal with guns.

But he balked at the idea of repealing the 2nd Amendment to the U.S. Constitution, which provides for a right to bear arms, saying he can’t imagine an attempt to repeal any of the amendments in the Bill of Rights ever being successful.

Keeping check on the charters

In response to a questions about the $71 million grant that Ohio received to expand charter schools in the state, Brown said he and the state’s four Democratic House members are awaiting an explanation from the federal Department of Education.

Some charter schools have a reputation for excellence, Brown said. He specifically cited Breakthrough Schools in Cleveland and KIPP Columbus.

But others, particularly for-profit charters, raise questions about the award, he said. That is particularly true in the wake of a scandal at the Ohio Department of Education in which former school choice chief David Hansen resigned after reports that he had left the F grades on online schools out of key evaluations of charter schools.

Brown said he and the other members of Congress have raised several questions about how the state was awarded the money and what checks federal officials have in place to be sure it is used properly.

“Ohio is ranked second to the last in the quality of for-profit charters,” Brown said.

“It’s bad for those kids who go to those schools and their parents think they’re getting something better than they are. And it’s bad for taxpayers.”