I have been doing a mini series both pro and con on Trump’s big deal for the infrastructure…..it is an ambitious plan at that but I do not see it being viable without some sort of tax increase….
This piece is critical of his stated plan for the infrastructure…..it is the con side of the debate…..
The plan suffers from five fatal flaws:
- The plan would push state and local governments to use equity capital that can cost 300 percent to 500 percent more than capital raised through traditional municipal bonds.
- The plan would provide no support for thousands of critical maintenance and reconstruction projects.
- The plan would raise taxes on middle-class Americans in the form of high-cost tolls and other user fees necessary to satisfy the 10 percent to 14 percent annual returns demanded by equity investors.3
- The plan would leave behind rural communities and smaller cities and towns that are not large enough to generate sufficient toll or other user fee revenues to satisfy equity investors.
- The plan would not meaningfully increase total economic activity, employment, or real wages.
Our infrastructure is one small glitch from a disaster…..I am all for improving the system….but I do not believe this is the answer to the coming problem….
The problem as I see it……his plan will crap all over the GOP stable of “small government”….but then he would not be first….would he?…..