A highlight from How the $1 Trillion Infrastructure Bill Would Impact the Economy



The bipartisan infrastructure. Bill has passed in the us senate. the pen. Wharton budget model has looked the impact. The bill should have on the us economy and a pleasure to have john huntley of the pen. Morton budget model joining us to take a look at their assessment. Hi john great to talk to you again. Thanks for having me so this had been you. You guys had looked at this in kind of the early days of this bill. Coming around how much. How similar is the final bill to what you had looked at early on in this process so They originally had a compromise. Bill in i guess it was around june And many of those provisions have changed so first of all on the spending side that's actually very Remarkably similar to what we're currently seeing or what was just passed yesterday. So the numbers are changed. Very little However on the on the revenue side things changed a bit back in the june bill. The one of the major sources of new revenues was increased. Irs enforcement for things such as audits and investigations which was anticipated. Raise a fair amount of money both in the ten in the next ten years and beyond the ten year budget window however that has since been replaced by a number of other provisions including increased crypto currency were reporting requirements which are anticipated to bring in a bit less money. The bill as it stands right now. When we think of infrastructure. I think normally the first thought is roads bridges et cetera. But there are quite a few elements in this bill. That maybe in the past we wouldn't have considered when you think about The build out of the internet. You go back twenty years. That was really not a consideration. When you're talking about infrastructure it certainly is today especially with our digital economy absolutely. I mean infrastructure You know the access to digital assets is is increasingly important and necessary to the modern united states economy. And i think there's still reflects that priority for both republican and democratic senators and the administration So yeah. I don't think that's something that necessarily would have appeared in a similar bill. Twenty or thirty years ago but there are clearly areas of this country that have been under served with internet access. And hopefully this bill will be able to bring them Access to so that they have the same sorts of opportunities that everybody else does. And you can add in there E development charging stations etc. That's another one of those components that a lot of people believe is going to be an important Element as we move out over the next Next couple of decades absolutely. I mean that that is definitely something. I don't think people would have interest updated twenty or thirty years ago but You know obviously a ton of manufacturers are coming coming out with some rather novel designs and you know hopefully it will be able to support other adoption. So you have the various elements of this bell and the various amounts that are going to be earmarked for all of these different areas The question of how this is going to be paid for. Though that continues to be one of those issues i think with any bill comes forward in this day and age is looked at so what the areas of revenue That are brought into the mix here To help pay for this bill so there are a few new sources of revenue Mentioned earlier the crypto currency reporting requirements which were anticipated generate some revenue They're also a couple of other small fees and taxes. Well i think there's a fee on. Superfund sites are on on polluters to generate money for this but that only goes out ten years a lot some of their other Pay fors or the ways that they're paying for this or by reducing certain Government spending for a few years but ultimately a lot of this bill is going to be paid for with Additional borrowing so. They're taking money. That would have been returned to the. Us treasury either through things like spec asset auctions like spectrum auctions or or just unused cova funds and they're applying that to to pay for this bill right and the covert funds could have very easily been returned to the government. It wouldn't have added on to the debt but in this situation The it feels like it's it's six of one half dozen of the other. You're putting that money to good use one way or the other. i mean. certainly. I mean it's going to productive assets However one thing we did notice that because this version of the bill In now that this past august uses more deficit financing that the that this offsets the positive effects from infrastructure investment a little bit more than they did in june bill so the positive effects on gdp or little smaller now They're closer to zero than they were before right. And i wanted to touch on that anyway. So take take us through that process in in reading this out. About how the change from june 'til now really has impacted that level of gdp. If you can. That's right so in june You know they. They raised a significant number of revenues particularly from irs enforcement And those revenues. We're going to be coming in for a long time. And so that generated a significant amount of government revenue

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