In the White House's budget for fiscal year 2016, to be officially announced Monday, Barack Obama will call for a one-off, 14 percent tax on earnings held by multinational companies overseas, The Guardian reports. There is an estimated $2 trillion in such untaxed earnings.
According to The Guardian, the proposed tax would raise $238 billion. This would be immediately put towards a proposed six-year, $478 billion national infrastructure project, upgrading roads, bridges, and public transport around the country.
The president is also expected to propose that U.S.-based companies pay a minimum 19 percent tax on future foreign earnings, Bloomberg reports. U.S. companies do not have to pay the 35 percent tax to which their foreign earnings are subject until they bring that money back to the United States. Companies are thus incentivized to move money around outside of the United States, like Microsoft, which, according to Bloomberg, holds $92.9 billion in profits outside the country, on which it would owe $29.6 billion in taxes.
Paul Ryan, the new Ways and Means chairman—Congress's primary tax-writing committee—told NBC's Meet the Press on Sunday, "What I think the president is trying to do here is to, again, exploit envy economics."