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McConnell rules out linking highway bill to overseas tax reform

McConnell rules out linking highway bill to overseas tax reform

Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellTrump flubs speech location at criminal justice conference Sunday shows preview: Trade talks, Cohen sentencing memo take center stage Trump tells McConnell to let Senate vote on criminal justice reform MORE (R-Ky.) on Thursday ruled out using revenue from taxing U.S. companies' foreign profits to pay for a multi-year highway bill, something Senate Democrats have discussed with House Republicans.

McConnell said any revenue collected from moving to a "territorial" tax system should not be used to pay for transportation projects.

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“Two separate issues,” he said. “There’s been a lot of focus on going to a territorial system. I might well be enthusiastic about that, but I view it as a totally separate track unrelated to the highway issue.”

The Senate last month passed a six-year highway bill that included a variety of ways to pay for the first three years of the legislation.

House Republicans, led by Ways and Means Committee Chairman Paul RyanPaul Davis RyanElection hacking will come to a ‘breaking point,’ says Dem strategist Webb: GOP must play prevent defense The Hill's 12:30 Report — Presented by The Embassy of the United Arab Emirates — George H.W. Bush lies in state | NRCC suffers major hack | Crunch-time for Congress MORE (R-Wis.), want to negotiate with the White House on tax reform to pay for a long-term highway bill. The House passed a three-month highway bill in July, which the Senate then approved, to give those talks more breathing room.

Ryan and Sen. Charles SchumerCharles (Chuck) Ellis SchumerPush to pay congressional interns an hour gains traction with progressives House approves two-week spending measure to avert shutdown Manchin’s likely senior role on key energy panel rankles progressives MORE (N.Y.), the third-ranking member of the Senate Democratic leadership, have looked at reforming the tax code for corporate profits kept abroad and using the revenue to pay for the transportation bill.

McConnell noted that he and Sen. Barbara Boxer (Calif.), the senior Democrat on the Environment and Public Works Committee, put together $47 billion worth of offsets to pay for the first half of the Senate-passed highway bill. He said it would go to a conference committee with whatever multi-year bill emerges from the House.

But he does not want it to become mixed up in year-end negotiations, when Democrats will be pushing to use the Senate highway bill’s offsets to raise spending caps and tax reform to pay for the highway bill.