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Trump: Advancing Tax Incentives and Public-Private Partnerships

President Elect Trump has vowed to work with Congress on an ambitious $1 trillion, 10-year proposal staked on tax incentives and private investment to stimulate jobs and rebuild highways, bridges and airports within his first 100 days in office.

To pay for large-scale infrastructure projects, the president-elect is seeking to entice the private sector to get on board with putting up $167 billion of the proposed $1 trillion investment in public-works projects by having the government offer them an 82 percent tax credit.

The plan also relies on increased tax revenues from two revenue streams generated from the new infrastructure projects to offset the tax expenditure: additional wage income from construction workers and contractor profits. Advancing Tax Incentives and Public-Private Partnerships

Trump has vowed to work with Congress on an ambitious $1 trillion, 10-year proposal staked on tax incentives and private investment to stimulate jobs and rebuild highways, bridges and airports within his first 100 days in office.

To pay for large-scale infrastructure projects, the president-elect is seeking to entice the private sector to get on board with putting up $167 billion of the proposed $1 trillion investment in public-works projects by having the government offer them an 82 percent tax credit. The plan also relies on increased tax revenues from two revenue streams generated from the new infrastructure projects to offset the tax expenditure: additional wage income from construction workers and contractor profits.

It is estimated that $300 billion or more in private capital is ready to be deployed for this purpose. This estimated sum exists as investors like pension funds, insurance companies and private equity believe deploying their capital towards infrastructure makes for a sound investment backed by the strength and integrity of local and state governments.

Thus, Trump’s proposal could provide significant and long-awaited opportunities for public-private partnerships, or P3s, to invest in major, high-cost, revenue-supported projects.

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Martin Milita

Martin Milita is a Senior Director at Duane Morris Government Strategies, LLC. Duane Morris Government Strategies (DMGS) supports the growth of organizations, companies, communities and economies through a suite of government and business consulting services. The firm offers a range of government relations and public affairs services, including lobbying, grant writing; development finance consulting, media relations management, grassroots campaigning and community outreach. Milita works at the firm’s Trenton and Newark New Jersey offices. Visit his blog at: https://martinmilita1.wordpress.com Follow him on twitter: @MartinMilita1 https://www.facebook.com/martin.milita http://www.dmgs.com/ BLOGROLL Martin Milita – About.me Martin Milita :: Pinterest Martin Milita @ Twitter Martin Milita at Slideshare Martin Milita on Google+ Martin Milita Yola Site Martin Milita | Xing

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