"Both parties," said President Trump in his State of the Union Address on Tuesday, "should be able to unite for a rebuilding of America's infrastructure." No doubt both Democrats and Republicans would love to. But with trillion-dollar deficits starting in 2020, where will Washington get the money?
That question has vexed the nation for years, but there's an answer: a special infrastructure bank that is 100% privately funded. The bank's cash, in turn, will come, not from taxpayer dollars or federal borrowing, but from U.S. and foreign investors looking for a good return. Washington will play a role by offering tax incentives for both equity and debt, providing light-touch regulatory oversight, but not spending a dime.
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