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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump's big infrastructure plan? It's a trap.
As the White House official responsible for overseeing implementation of President Obamas massive infrastructure initiative, the 2009 Recovery Act, Ive got a simple message for Democrats who are embracing President-elect Donald Trumps infrastructure plan: Dont do it. Its a trap. Backing Trumps plan is a mistake in policy and political judgment they will regret, as did their Democratic predecessors who voted for Ronald Reagans tax cuts in 1981 and George W. Bushs cuts in 2001.
First, Trumps plan is not really an infrastructure plan. Its a tax-cut plan for utility-industry and construction-sector investors, and a massive corporate welfare plan for contractors. The Trump plan doesnt directly fund new roads, bridges, water systems or airports, as did Hillary Clintons 2016 infrastructure proposal. Instead, Trumps plan provides tax breaks to private-sector investors who back profitable construction projects. These projects (such as electrical grid modernization or energy pipeline expansion) might already be planned or even underway. Theres no requirement that the tax breaks be used for incremental or otherwise expanded construction efforts; they could all go just to fatten the pockets of investors in previously planned projects.
Moreover, as others have noted, desperately needed infrastructure projects that are not attractive to private investors municipal water-system overhauls, repairs of existing roads, replacement of bridges that do not charge tolls get no help from Trumps plan. And contractors? Well, they get a 10 percent pretax profit margin, according to the plan. Combined with Trumps sweeping business tax break, this would represent a stunning $85 billion after-tax profit for contractors underwritten by the taxpayers.
Second, as a result of the above, Trumps plan isnt really a jobs plan, either. Because the plan subsidizes investors, not projects; because it funds tax breaks, not bridges; because theres no requirement that the projects be otherwise unfunded, there is simply no guarantee that the plan will produce any net new hiring. Investors may simply shift capital from unsubsidized projects to subsidized ones and pocket the tax breaks on projects they would have funded anyway. Contractors have no obligation to hire new workers, or expand workers hours, to collect their $85 billion. To their credit, the plans authors dont call it a jobs plan; ironically, it is Democrats looking to align with Trump who have given it that name. They should not fool themselves.
https://www.washingtonpost.com/opinions/trumps-big-infrastructure-plan-its-a-trap/2016/11/18/5b1d109c-adae-11e6-8b45-f8e493f06fcd_story.html?utm_campaign=pubexchange&utm_medium=referral&utm_source=huffingtonpost.com&utm_term=.4e904003857f
longship
(40,416 posts)You beat me to it...That's exactly what I thought when I read the title!
lunasun
(21,646 posts)infrastructure project. It is good propaganda for his followers to keep them thinking he is making America great again
And that may be all folks about that plan
LT TX
(104 posts)Before his supporters figure out they fell for a con man??
radical noodle
(8,000 posts)it's a tax break for him.