CED

September 2013

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View from the Hill Removing the Roadblocks to Rebuilding U.S. Infrastructure With a 50-50 bipartisan sponsorship, new bill would establish partnerships between the public and private sectors. By Congressman John Delaney (D-Md.) Editor's Note: While AED has long argued that highway user fees should be increased as part of broader tax and budget policy, it has become clear in an era of increasing fuel-efficiency and even non-gasoline-fueled vehicles, that new ideas are essential. We applaud Rep. Delaney for the bipartisan-supported concept he has brought to the table. -KP America's aging infrastructure badly needs investment. Our airports are struggling to meet global demands, our schools are crumbling, and our roads and bridges remain in disrepair. The country's infrastructure shortfall is a drag on our economy and our quality of life. Our aging 20th century infrastructure won't propel us forward in the 21st century. Such inefficiencies already cost U.S. businesses and families billions of dollars annually, and things are only getting worse. In March, the American Society of Civil Engineers (ASCE) issued the nation's infrastructure a D+ rating, and estimated that the U.S. needs at least $3.6 trillion in investments by 2020 to remain globally competitive. It's somewhat counterintuitive, but America's deep infrastructure hole presents us with a unique opportunity. Despite the abysmal score, the ASCE report found that investments in infrastructure have the potential to invigorate the economy: A trilliondollar investment over the next decade would create millions of jobs and boost GDP by $3.1 trillion. Of course, those in the transportation industry know all too well about these issues, and all too often the importance of investing in our infrastructure has been put on the congressional backburner. Any measure that makes doing business easier, more efficient, and more lucrative should be a top priority. With this in mind, I've proposed a creative solution that enables us to make infrastructure investments without adding to our budget problems. My bill, The Partnership to Build America Act (H.R. 2084), offers an innovative approach to funding the improvements we need to stay competitive. Perhaps most important, this proposal does not increase our national debt or put taxpayers at risk. My plan differs from previous infrastructure proposals in two important ways: First, my bill allows states and cities – not the federal government – to determine their own infrastructure needs. Second, my plan does not involve any direct federal appropriations, instead attracting private capital through the creation of a public-private partnership. As a result, taxpayers are entirely off the hook. Here's how it works: U.S. corporations with profits abroad would be encouraged to purchase $50 billion of Infrastructure Bonds, which are 50-year bonds that pay 1 percent interest and are not guaranteed by the U.S. government. The money generated from the sale of these bonds would allow the American Infrastructure Fund to provide financing for up to $750 billion in infrastructure projects. In exchange for purchasing these otherwise unattractive bonds, my plan allows these U.S. corporations to repatriate some of their overseas earnings tax-free. Thus, the bill has the added bonus of incentivizing corporations to bring business back home. In short, my plan creates a marketbased partnership between the government and the private sector, and it does so in an arena where such a relationship makes perfect sense. Because a strong national infrastructure is critical to the effective functioning of both the public sector and private industry, the potential – and need – for cooperation is clear. This spirit of collaboration is reflected in the bipartisan coalition of 38 representatives –19 Republicans and 19 Democrats – who have co-sponsored my bill. That's why the American Society of Civil Engineers, the same organization that stressed the urgent need for investment in transportation, energy, water, and education projects, has endorsed the plan. Gridlock is a problem on our overburdened roads – and too often a problem in Washington, as well. But the Partnership to Build America Act is about problem solving, job creation, and fiscal responsibility. That's something we can all agree upon. I look forward to working with Associated Equipment Distributors' members to rebuild our crumbling infrastructure and laying the foundation for economic growth for generations to come. Congressman John Delaney is in his first term representing Maryland's 6th congressional district. He is a member of the House Financial Services Committee, and is the only former CEO of a publicly traded company in Congress. September 2013 | Construction Equipment Distribution | www.cedmag.com | 53 53_view from the hill_KP.indd 53 8/28/13 12:25 PM

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