Republicans open to tax holiday to replenish US highway fund -McConnell

U.S. Senate Minority Leader Mitch McConnell

U.S. Senate Minority Leader Mitch McConnell said on Tuesday that Republicans were open to using a tax holiday for multinational companies as way to pay for broad highway construction legislation this year.

McConnell said a tax holiday would give firms "the opportunity to bring home overseas profits." The plan would give companies a one-time reduction in the amount of taxes they pay on profits earned abroad, giving them an incentive to repatriate those earnings.

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The Republican senator said the extra revenue could go to the Highway Trust Fund, which is used for construction and repair projects and is expected to run out of funds by late August.

—By Reuters