Trump administration ’ s reelection campaign website touts the president ’ s infrastructure investments in rural America and efforts to “ rebuild ,” but the president has yet to advance infrastructure legislation through Congress after nearly four years in office despite initial optimism and bold plans .
Meanwhile , Biden has touted his focus on developing “ modern , sustainable infrastructure ” to create jobs , improve equity and deliver a clean energy future . But how does he plan to do this , if elected ?
Biden has hinted at modernizing highways and roads , investing in light rail networks , updating ports , investing in 5G technologies and expanding rural broadband , among other goals , Schettenhelm said . These proposed efforts have long been the goals of many Democratic leaders , and would likely see success in a new Congress .
“ Passing that legislation becomes much easier the bigger the ‘ blue wave ’ [ is ] that Democrats ride in this election ,” Schettenhelm said . “ Everything is easier to get done if you don ’ t have to engage in the horse trading with the other party to get it done .”
Yet even without Democratic control of Congress , the Biden administration could be successful in passing infrastructure legislation if it keeps a particular eye on timing . The temporary extension to the Obama administration ’ s Fixing America ’ s Surface Transportation ( FAST ) Act is set to expire on Oct . 1 , 2021 , therefore the time leading up to Q4 will provide a “ natural focus for lawmakers to consider moving infrastructure legislation forward ,” Schettenhelm said .
How would infrastructure goals be funded ?
Funding is a critical component of successful infrastructure legislation , and taxes can be a key driver of that cash flow , said BI tax policy analyst Andrew Silverman .
“ Infrastructure repair is expensive . It ’ s actually very expensive , and governments — federal , state and local — need cash to make their infrastructure projects happen ,” Silverman said . “ Taxes are the easiest way to create that cash .”
In contrast to President Trump ’ s tax-cutting measures , Silverman said a potential Biden administration would likely raise taxes in one of the following areas to fund infrastructure projects :
■ Gas tax : If the gas tax were increased 35 cents , it would raise about $ 515 billion over the next 10 years for road and infrastructure funding , Silverman said .
■ Carbon tax : A $ 50-per-ton carbon tax would raise $ 1.8 trillion over 10 years , Silverman said , yet that number does not account for a dividend or tax credit included in many carbon tax proposals today .
■ VMT tax : A vehicle miles traveled ( VMT ) tax may be a promising tax option for infrastructure funding due to the “ enormous ” number of miles Americans travel in a year , Silverman said . He projected that if a VMT tax was set at one cent per mile , it would produce $ 322 billion over 10 years — likely higher , as VMT miles see a compound annual growth rate of 2 %.
“ The issue with all these taxes is that they ’ re
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