NRMCA Supports Push for Infrastructure Spending
During the campaign, President Trump pledged to seek a $1 trillion infrastructure investment that will rely heavily on tax incentives and public-private partnerships. In his inaugural address, he reiterated his commitment to rebuilding America’s infrastructure. In an attempt to upstage the President, Senate Democrats last week unveiled a 10-year, $1 trillion infrastructure plan. The plan focused primarily on government investment in building roads, mass transit construction and public works projects. Where the President and Senate Democrats disagree, however, is in paying for the projects. While Democrats’ plan calls for massive government spending, the President’s plan relies less on government spending and more on private investment. President Trump has promised that infrastructure spending will be revenue neutral and that any government spending will not increase the deficit.
That is not to say, however, that there will be no government spending. For several years, infrastructure conversations on Capitol Hill have included the idea that infrastructure investments could be funded in part by a tax reform package. The proposal centers on "repatriation" of U.S. companies’ earnings that are currently held in accounts outside the nation’s borders. By giving these companies the opportunity to bring this money back the U.S. at a relatively low tax rate, the federal government could generate hundreds of billions of dollars in tax revenue. Proponents of infrastructure investment advocate for using these funds to pay for some of the infrastructure package.
While Senate Democrats and President Trump differ on how to fund the infrastructure package and are unlikely to agree to a plan based on Senate Democrats’ proposal, Bloomberg News reported earlier this week that the President’s big plans for infrastructure "will stay big." Bloomberg detailed four likely scenarios, including both the Democrats plan and a plan closer to the President’s proposal that includes new revenue through corporate tax reform.
Last week, NRMCA joined a broad coalition in support of a comprehensive infrastructure investment package, including addressing issues like the Highway Trust Fund’s perennial shortfall and supporting a state of the art infrastructure system. In a letter to the Trump Administration, NRMCA asked for a balanced infrastructure investment plan addressing all types of infrastructure throughout the country. As the administration proceeds in formulating its plans for an infrastructure package, NRMCA will continue to engage and advocate on behalf of the ready mixed concrete industry.
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