Donald Trump's $1 Trillion Infrastructure Plan Relies on Private Funding
Republican presidential candidate Donald Trump has revealed details of a $1 trillion plan for infrastructure spending over a decade that relies heavily on private funding.
Yahoo! reported that Trump's plan, drafted by economic advisers Peter Navarro and Wilbur Ross, encourages investment through a tax credit that would raise the return to investors and lower the cost of borrowing to states and municipalities that would oversee the projects.
Democratic rival Hillary Clinton proposed a five-year, $275 billion plan in government spending, as well as $225 billion of private investment. The revenue would come from the creation of an infrastructure bank. She also has advocated generating revenue through an overhaul of the corporate tax system.
Trump's plan does not create new taxes. Taxes collected from workers and participating companies would offset the costs, according to Navarro and Ross.
Ross called the plan "deficit-neutral," and said thousands of jobs would be created building needed transportation, water, telecommunications and energy infrastructure.
The report saide that as incentive for private sector contributions, the government would provide a tax credit equal to 82% of the equity amount.
Contributing: Bloomberg News
