Navarro and Ross, pretty detailed. Full document here.
Revenue neutral to placate the old debt morons; non-zero US government backed returns on the new debt for the USD zombies.
A true win-win!!!!
Maybe the Japanese also want in on this for the implied 5% on the debt portion (tired of their own permanent ZIRP) and Abe is discussing taking a big league position in it with Trump over golf this weekend.
The Trump Private Sector Financing Plan The Trump infrastructure plan features a major private sector, revenue neutral option to help finance a significant share of the nation’s infrastructure needs. For infrastructure construction to be financeable privately, it needs a revenue stream from which to pay operating costs, the interest and principal on the debt, and the dividends on the equity. The difficulty with forecasting that revenue stream arises from trying to determine what the pricing, utilization rates, and operating costs will be over the decades. Therefore, an equity cushion to absorb such risk is required by lenders. The size of the required equity cushion will of course vary with the riskiness of the project. However, we are assuming that, on average, prudent leverage will be about five times equity. Therefore, financing a trillion dollars of infrastructure would necessitate an equity investment of $167 billion, obviously a daunting sum.
Companies paying the ten percent tax on the repatriation of overseas retained earnings could use the tax credit on infrastructure equity investment to offset their tax liability on bringing the money back. This would effectively convert a tax liability into an equity investment in an infrastructure project. The mechanics of this are straightforward: Repatriate $1 billion, incurring $100 million of tax, and invest $121 billion in the equity of an infrastructure project. The 82 percent tax credit on the $121 thereby fully extinguishes the repatriation tax so at the end of the day they have a $121 million infrastructure equity investment and no tax bill while the US has more and new infrastructure.