Trump campaign unveils plan to spend $1 trillion on roads, bridges, and other infrastructure with no tax hikes
Mark Lyons/Getty Images
According to a report from Yahoo Finance's Rick Newman, the campaign of the Republican presidential nominee has a plan to spend $1 trillion on a variety of infrastructure projects over 10 years if he is elected.
Trump has long been in support of infrastructure spending, and has said he would double the $300 billion that Democratic rival Hillary Clinton plans to spend on projects such as roads, bridges, and the like.
The report from Yahoo Finance said that the plan was developed by Trump economic advisors Peter Navarro and Wilbur Ross.
Interestingly enough, the plan does not call for tax increases to finance the projects. A tax credit would be offered to private companies in order to finance projects, while the companies would also have to take equity investments in the projects. According to Yahoo Finance, $167 billion of the $1 trillion investment would be equity investment while the rest would be debt raised by private partners.
Additionally, all projects built under the plan would be required to generate cash flow, like toll roads or airports that produce tax revenue instead of free parks or non-toll highways. Then, the equity investment partners would also take the revenue, essentially privatizing much of the new infrastructure and making riskier investments more palatable.
The plain claims that taxes on the revenue generated by the infrastructure projects as well as taxes from workers would offset the lost revenue from the credits.
According to Yahoo, Ross cited the cheap cost of debt financing due to low interest rates from the Federal Reserve as a reason to launch such a huge wave of public investment. He also said that despite being privately built, the government could assist in running some of the new projects.
Infrastructure spending appears to be one of the few things both nominees agree on, and is supported by financial giants and the economic community at large. Essentially, the idea is that with monetary policy stretched to its limits and economic growth still lackluster, spending by the government would kick-start private investment and economic dynamism.
The Trump campaign confirmed their support of the plan to Business Insider.
Check out the full details at Yahoo Finance»
- Elon Musk and more than 1,000 people sign an open letter calling for a pause on training AI systems more powerful than GPT-4
- The good news is, only old office buildings are doomed. The bad news is, that's 70% of them.
- Mobile payments pioneer Paytm ‘deeply rooted in India’ — social media users hail Paytm’s QR strength that powers India’s small merchants
- Musical Marathon: Backstreet Boys to Ultra music fests are ready to rock India in 2023
- IPL 2023 new rules – from two team sheets to impact player, here are the new rules
- Current Account Deficit narrows to 2.2% of GDP in Q3: RBI data
- No festive cheer for auto cos in March: PV sales ‘flattish’, 2Ws to see a slight uptick
- Star Sports gets a tech upgrade for IPL 2023: Dolby Atmos, Real-time Highlights, Ambience-only mode, and more explained