This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Rep. Delaney Hopes Pfizer Anger Will Fuel Infrastructure Bill (Correction)

A previous version of this story incorrectly stated that 40 Senators support the proposed infrastructure bill from Sens. Roy Blunt (R-MO) and Michael Bennet (D-CO). This story has been corrected to reflect the fact that 13 senators support the legislation.

NEW YORK (TheStreet) --Anger over tax-driven megadeals has been reignited by Pfizer's  (PFE) proposed acquisition of AstraZeneca  (AZN), and Rep. John Delaney is hoping to harness that outrage to help build momentum for his trademark infrastructure legislation.

Delaney's proposal, the Partnership to Build America Act, allows U.S. companies to repatriate earnings stashed overseas tax free provided they use some of it to buy infrastructure bonds. The bonds, which pay a low interest rate over 50 years, pay for $750 billion in infrastructure with no increase in government spending.

Pfizer proposes to use overseas cash to pay for its AstraZeneca, a move that wouldn't be as attractive if it could bring the cash back to the U.S. tax free, Delaney argues.

"If they bring it back they only get 70 cents on the dollar so it basically gives them cheaper money to do a deal like this."

Apart from his legislation, however, Delaney argues more comprehensive tax reform is needed. He favors moving to what he calls a modified territorial tax system that would allow U.S. companies to repatriate earnings once they have paid a minimal amount of tax in foreign jurisdictions.

"I don't think we've got to match the lowest bidder in the world, but we shouldn't have these double taxes," Delaney says.

Delaney claims 31 Democrats and 32 Republicans support his proposal in the House and as of last week 13 Senators supported a companion bill from Sens. Roy Blunt (R-MO) and Michael Bennet (D-CO)

But liberal Democrats may be a tougher sell.

Delaney told me in March he believes 10% to 15% of the 200 Democrats in the House believe that "what US corporations are doing...in terms of creating all this overseas cash is just fundamentally at some level evil. They're hiding money overseas and they're shifting jobs overseas which is why we're creating all this cash overseas and we should not be reforming this system to facilitate [money] flowing back. We should be applying a mandatory tax on all international earnings."

Still, Delaney cited "some liberal people in the Senate who have been very outspoken like Chuck Schumer (D-NY) [who have] been very positive on the notion of using repatriation dollars to fund infrastructure like our bill."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs