Obama plans tax on US firms overseas to fix roads at home.

Monday, 02 February 2015 - 15:00

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The White House says that US President Barack Obama plans to close a tax loophole that allows US firms to avoid paying taxes on overseas profits.

His 2016 budget will impose a one-off 14% tax on US profits stashed overseas, as well as a 19% tax on any future profits as they are earned.

The 238 billion dollars which was raised, will be used to fund road projects in the US.