In a new report for the Heritage Foundation, Michael Sargent summarizes what we need on infrastructure from the incoming Trump administration. I agree with all of Michael’s points, which I paraphrase here:
- Ignore rhetoric about crumbling highways and falling‐down bridges. America’s infrastructure needs improvements, but the scare stories are off‐base.
- Reduce government red tape to speed investment.
- Repeal harmful labor rules, which raise the costs of infrastructure construction.
- Embrace privatization.
- Approve energy projects blocked by the Obama administration.
- Repeal the net neutrality regulations on the Internet.
- Limit regulations on emerging technologies.
- Cut the federal highway gas tax, end spending on urban transit, and reduce the federal role in highways.
- Privatize air traffic control, eliminate subsidies for airports, and remove barriers for the states to restructure airports as self‐funded businesses.
- Do not pass a federal infrastructure spending stimulus.
- Do not use repatriated corporate earnings for a government stimulus. If such revenues arise from corporate tax reform, use them to reduce the corporate tax rate.
- Do not create new tax loopholes or subsidies for infrastructure.
- Do not create a federal infrastructure bank. That would lead to more bureaucracy, subsidies, and central control.
I would add to Michael’s points that I share concerns expressed by Trump and others that America should have world‐class infrastructure. But the way to get it is not through subsidies, regulations, and centralization. Instead, the incoming administration should focus on market‐based reforms to privatize facilities, reduce subsidies and regulations, and increase competition.
For more information on infrastructure reforms, see here, here, here, and here.