By Mark Holan, editorial director, ARTBA
Congress is much more likely to approve new federal infrastructure funding this year as part of a larger overhaul of the U.S. tax code, according to a bipartisan trio of House members.
The odds of securing new money for roads and bridges drop to “very low” if tax reform is considered alone and before infrastructure, Rep. John Delaney (D-Md.) said.
Delaney and Rep. Rodney Davis (R-Ill.) introduced legislation in March to create an American Infrastructure Fund to finance state and local projects through a one-time bond sale to U.S. corporations that bring home some of their international earnings. Delaney and Rep. Ted Yoho (R-Fla.) also wrote a bill to provide additional revenue for the Highway Trust Fund (HTF) through international tax reform.
All three House members appeared at a June 21 Bloomberg Government event in Washington, D.C. They agreed more diversity is needed to pay for infrastructure, including public-private partnerships and infrastructure banks. Davis said just relying on the federal gas tax to fund the HTF is like investing an entire 401 (k) in one stock.
Davis also said this week’s Republican win in a Georgia House race makes him more optimistic about getting tax reform and infrastructure funding done this year.