This is the Cato Daily Podcast for Saturday, December 17th, 2016.

I'm Caleb Brown.

What is the Trump administration's plan for rebuilding what's termed crumbling American infrastructure.

Cato Senior Fellow Rantil O'Toole discusses the plans which include tax credits for companies

that take government contracts and no particular focus on infrastructure that could deliver relatively large gains in US GDP.

As you understand it, what is Donald Trump's plan to boost infrastructure in the United States.

He suggested that we offer tax credits to private corporations who build new infrastructure

or repair existing infrastructure.

A lot of people think that means that the private corporations are expecting to collect user

fees from people for that infrastructure.

But in fact what he's suggesting is that local governments, instead of selling bonds on their own to raise money

to build infrastructure, will contract with private contractors who will then sell bonds,

get tax credit for their bonds,

and then the local governments will repay the contractors

for the infrastructure out of tax dollars.

In some cases, there might be tolls or other user fees,

but in most cases, it would ultimately be paid for out of tax dollars.

And so the question is, is there a real difference between municipal tax-free bonds or private taxed bonds but with a tax credit.

So traditionally a local government or a state government would say, well we want this project

done.

They would either they would issue a bond

or put one on a ballot or something like that

...