Financial Times: Pass the Delaney Bill

On April 30, 2014, the Financial Times published an editorial on the state of U.S. infrastructure, arguing that "US economic growth is increasingly constrained by ever-lengthening commutes, transport delays and glitches."

One of the solutions proposed by the paper is the Partnership to Build America Act (H.R. 2084), which currently has over 30 Republican and 30 Democratic cosponsors.

The paper writes:

Mr Obama has tried and failed to persuade Congress to set up a public-private infrastructure bank that could raise funds on the capital markets. The idea remains a good one. But Republicans object to anything that smacks of bureaucratic control. One solution would be for Washington to crowd in private financing via better tax incentives. Municipal bonds are tax-exempt but private ones are not. Many investors also remain wary of committing to large projects because of regulatory uncertainty. Only 30 of 50 states permit public- private funding. And there are large inconsistencies between those that do.

Another is for US states and cities to embrace models used elsewhere in the world. London, Stockholm and other global cities have set up effective congestion pricing schemes. US cities should follow suit. In Oregon, officials have set up an innovative pilot project that switches from taxing fuel usage to charging drivers based on how many miles they drive. If it works, it could be adopted at the federal level. Moreover, John Delaney, a congressman from Maryland, has drafted a bill that would give US companies a tax break on any repatriated foreign earnings invested in US infrastructure bonds. The Delaney bill deserves to be passed.

For more information on the Partnership to Build America Act, please click here.