DALLAS – The U.S. must take advantage of the political opportunity to restore the deteriorating national transportation infrastructure, the National Association of Manufacturers said in proposing more than $1 trillion of additional investments in road, rail, port, and transit projects over the next decade.
Revenue options outlined in the group's "Building to Win" proposal include an 80% increase in the federal gasoline tax, initiation of a vehicle-miles-traveled road fee, a national infrastructure bank, and additional private investments from a revived Build America Bond program.
"We must seize this moment," said NAM CEO Jay Timmons. "The presidential candidates are offering their support for infrastructure renewal, and bold action in Washington is finally within reach."
Republican presidential nominee Donald Trump has proposed a large but unspecified level of infrastructure funding supported by revenues from a one-time, 10% tax rate on foreign corporate earnings and an end to the deferral of U.S. taxes on corporate income earned abroad.
Democratic nominee Hillary Clinton has proposed a $250 billion, five-year infrastructure jobs plan financed in part through unspecified business tax reforms, a $25 billion national infrastructure bank, and revival of the Build America Bonds program.
An increase in infrastructure funding will be the NAM's signature issue on Capitol Hill next year, Timmons said at the Oct. 14 news conference unveiling the group's "Building to Win" proposal.
"Our failing infrastructure is an embarrassment for our nation," he said. "Our ability to compete successfully in the global economy is being held back by roads and bridges in disrepair, and ports and airports operating beyond capacity."
Delays, detours, and congested roads, ports, and airports are damaging the U.S. economy and the situation will only get worse unless more attention is paid to infrastructure, Timmons said.
"Transportation infrastructure in America needs both an urgent fix and a modern reimagining," he said. "Manufacturers want to make sure that money is not wasted and lawmakers tackle the real problem so we can build world-class, 21st-century infrastructure."
U.S. businesses pay $27 billion every year in additional freight costs due to poor road conditions, and will lose another $258 billion by 2020 without improvements to aviation infrastructure, NAM said.
"Infrastructure today is woefully inadequate, slowing our economic growth, endangering our fellow citizens and giving other countries a competitive advantage," NAM directors said.
Adding 15 cents to the federal gasoline tax of 18.4 cents per gallon and the diesel tax of 24.4 cents would generate $41.8 billion for highway and transit projects over five years, NAM said, with another $16 billion realized by linking the fuel taxes to inflation.
Replacing federal fuel taxes with a VMT fee for cars of 1 cent per mile and a 4 cents per mile fee for trucks could bring in almost $250 billion over five years, NAM said.
Federal fuel taxes and other taxes dedicated to the Highway Trust Fund currently generate about $40 billion per year.
Airport expansion projects would benefit from an additional $12.4 billion over five years that could be realized by raising the cap on the federal passenger facility fee to $8 from the current $4.50 per trip segment, NAM said.
As much as $5 billion of additional private investments could be leveraged with new federal qualified public infrastructure bonds, NAM said. The bonds would be similar to private activity bonds, though more flexible and available for more projects.
The Move America Bonds and tax credits proposed by Sen. Ron Wyden, D-Ore., and Sen. John Hoeven, R-N.D., could stimulate $225 billion of private investments in public infrastructure, NAM said.
