Infrastructure-Financing.com

Infrastructure Financing - No Money/No Plan

The Big Problems and Limitations of Infrastructure Projects

1. The U.S. Currently has national budget deficits and a National Debt of $27 Trillion.

2. Of the $27 Trillion in the National Debt, 24.8% is held by foreign nations, including:

a) China ($1.07 Trillion) b) Japan ($1.29 Trillion) c) United Kingdom (425 Billion), d) Ireland ($331B), e) Hong Kong (267B), f) Brazil ($266B), and g) Luxembourg (265B).

3. The COVID-19 pandemic plummeted the USA into economic decline, with a Q2 2020 GDP. decline of about 1/3.

4. The Trump Administration proposed $1.8 Trillion in infrastructure investment over a 10 year period. We need more than twice this just for repairs ($600 Billion more) by next year.

5. There were several "Infrastructure Week" and proposals (no plans) by the Trump Administration which had no substance or chance of enactment.

6. The Trump Tax Law of 2017 gave 2 Trillion in annual tax cuts, mostly to the wealthy and large corporations (wealthy & corporate tax reductions are permanent, while taxes on the Middle Class are temporary by design).

7. The Trump Infrastructure Plan didn't generate the funds needed by 2020, much less 2025 for repairs only (only 30% of what is necessary and over a 10 year period).

8. The Trump Administration apparently never had a feasible or viable plan for financing infrastructure projects. When you consider that President (then candidate) Trump campaigned upon an infrastructure project of building a wall along the entire Mexican border and he would have Mexico pay for it, gives evidence that the Trump Administration not only doesn't have a plan for the infrastructure of the USA and how to pay for it; but sadly, he obviously doesn't have a clue.

9. Since 2017, the deficit spending of the Trump Administration has increased the National Debt by $6.6T Of that amount $3.2T in 2020 is due to deficit spending created by the COVID-19 pandemic.

10. The Congressional Democrats Infrastructure Plan isn't much different, nor much better than Trump's and it proposes to raise federal taxes back to pre-2017 levels. Download and See: A Blueprint to Rebuild America's Infrastructure found at the bottom of the Legislation & Politics Page.

11. On May 15, 2020, the House of Representatives passed and sent the HEROES Act, containing funding for some infrastructure, and sent it to the Senate, where no action was taken. The infrastructure emphasis "Moving America Forward Act" (H.R. 2) met the same fate on July 20, 2020.

12 The national tax rate for fuel taxes will have to be raised by a minimum of $.25/gallon and is more like $.50/gallon.

13. States, counties and municipalities will have to fill the deficits and they are already facing budget shortfalls and deficits.

14. States, counties and municipalities will have to increase their taxes on the general taxpaying public whether they be income taxes, property taxes, and sales taxes.

15. These state, county and municipal taxes will have to be borne by the average taxpayers, who although got some tax breaks by the 2017 Trump Tax Law, which is only a temporary tax break.

16. The taxpayers on the whole will see increases in their various forms of taxes, with both Republicans and Democrats at the state, county and municipalities level, thus negating the tax reductions of the Trump Tax Law of 2017.

17. These state, county and municipal increase in taxes only covers repairs and not the needs to increase capacities.

18. Even prior to COVID-19 pandemic and the Trump Administrations actions, the results of the USA neglecting infrastructure included:

A. $3.9 Trillion losses to GDP;

B. $7 Trillion in lost business sales;

C. 2.5 million lost jobs; and

D. Each household annually loses $3.400 in disposable income.