YouSaid · the spoken record

Kevin Hassett

lines on the record: 64
first: 2016-11-17
most recent: 2016-11-17
sittings or episodes: 1
sources: podcast

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“Actually, happen, we wouldn't expect everything that he said on trade to come true, but that's going to be kind of a big early test, I think, because if we can get through the potentially negative economic effects of trade restrictions and maybe immigration restrictions, a lot of the rest of the Trump agenda is probably reasonably positive for the market and probably for growth too.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“And I'm going to be very interested to see whether the Trump administration, when they come out with their budget, and for that matter, Republicans in Congress, when they do their annual budget resolution, whether they are going to adopt that kind of framework instead of what they've done over the last few years, which is basically aim for a deficit that's going down, not up. So I think that's going to be one of the really big questions. You know, the other big question, I think, is a little bit more on the sort of the negative side, I guess, which is on trade policy. If you look at what President Electron said about trade right before the election, he laid out the first hundred days agenda. And there were a number of things on sort of trade restrictions, currency manipulation, etc., etc that were supposed to be done, if not on day one, very, very quickly. So I'll be watching kind of on day one to see how many of these things”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“So, apart from the fact that we still need to see kind of all of the appointments, and that will be the first signal, I guess I will be watching the budget process in particular because we're going to find out early on putting aside all the specifics about tax policy and the rest of it. We're going to find out very early on what the overall view is on the deficit.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“And where exactly that line is drawn, I think it's going to be one of the critical things, but it's also one of those very uncertain things about the Trump administration where he is not a traditional Republican. He does not seem to have as much of a problem with borrowing. And that creates a lot of uncertainty. And that's what we're seeing right now.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“We are going to be paying a lot of attention to presidential appointments in the near term, to announcements about what's coming first and what's coming later and sort of what is that set of priorities. And then to your point also, a lot of attention to where is the marginal support for different things in Congress. I mean, we know on certain issues what congressional leadership is saying, but where are the actual votes for certain things? And, I mean, getting back to kind of where we started, to me, one of the biggest questions right now is for the last several years, Republicans have been very focused on reducing the deficit or at least not expanding it significantly. And the Trump agenda in general, and certainly has been interpreted by the markets this way, is all about fiscal expansion.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Yeah. Now, from the financial market perspective, though, that can also be, I don't want to say a problem, but that can be a little bit more interesting, right? Because you don't really know on some of these things where policy is going to end up as opposed to, say, a president who comes in with very clear ideological views on a variety of different issues. And so when we think about the prospects for increased volatility or trying to predict what's going to happen a year from now for certain sectors,”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“I mean, I think there are certain. So if we go back to election night and the speech he gave, the one thing that he pointed out, and maybe it was because he was trying to be conciliatory and think about bipartisan areas, but the one thing he pointed out was infrastructure, for instance. And that's, I mean, that's an area where he probably can get pretty substantial democratic support depending on the details of the deal. So, you know, I do think that there are some areas where his unconventional approach probably helps. I'll say there are also areas where Maybe it's just more pragmatism or flexibility. So tax policy is probably one of those where I don't think he has really strong views about the details of tax policies. Just get it done.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“We've seen obviously presidents come in with a stance on that and change their minds. President Reagan famously did. So on a lot of issues, we've talked about the sort of unpredictability and unknowability of where things might go. But on a lot of issues, President-elect Trump stands well outside of traditional Republican orthodox economic policy thinking, certainly on trade. How might they play to his advantage or disadvantages as he works to enact his proposals? Is it possible? He'll get support from some unlikely corners as he will to help.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Is going to be just marginally more hawkish than Janet Yellen has been, but that it's probably not going to be a huge change. But with that said, there is a lot of uncertainty around this. And it's, you know, I don't think you could rule out the possibility that he appoints somebody who's actually similar to Yellen or even maybe a little bit more dovish. So not to say that it's going to happen, but I don't think you can rule it out, so there's a wide range of outcomes.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Being in real estate as a businessman at low interest rates. As you said, from a personal perspective, he's a low interest rate guy. Now, I think the question is going to be you typically associate criticism of the Fed's policy or recent policy with a hawkish monetary stance. But in this case, it's not really to your point. I mean, he's a low interest rate guy, and for that matter, he's also the incoming president and the incoming president typically wouldn't want an overly hawkish policy. So I think it's really unclear where, you know, he ends up coming out on monetary policy. I mean, our working assumption is that the next chair, assuming that Yellen doesn't get reappointed, which he said he is unlikely to do,”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Not much. Not much. I mean, what seems clear is that he does not like where Fed policy has been over the last few years. What's less clear is what he wants it to do from here. So, I mean, he's laid out on multiple occasions his concerns about the fact that rates were too low for too long and that that might have created asset bubbles or other sort of artificial effects on financial markets.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“The chair will probably leave, and then we'll see what other vacancies open up, but there's at least then one vacancy, if not another couple of vacancies. And the other one I should mention is vice chair Fisher. His term is up in July 2018. So that's going to be another one. And so what we're kind of looking at is actually five spots on the Fed board.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“But overall, those are the two sort of big jobs that have to get filled, and they probably would both then take those two vacancies. One would imagine that over time, certainly in terms of the appointment of the next chair, but then maybe also the vice chair for supervision, the appointment of those people would then open up additional board spots that would then become vacant. So we'll probably have another company on the chair.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Jobs that no one's ever taken. Exactly, exactly. And so on an informal basis, Governor Terulo has been focused on regulation, but this would then be sort of the formal version of this job. And so, you know, the...”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Well, so right now there are two spots on the Fed board that are vacant. President Obama sent nominations to the Senate, but those were never confirmed, so President Trump will be able to make both of those nominations. So that'll influence the board. Now, there's a little bit of sort of mechanics that you have to get through because in order to nominate a Fed chair, and Janet Yellen's term expires in January 2018, so he's going to probably need to nominate somebody like in, I don't know, the summer or early fall of 2017 at latest in order to get through that process.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Obviously, in the campaign, there's a lot of attention in the debates and elsewhere about Supreme Court appointments. But the president also has the power to appoint officials to the Federal Reserve. You've said our next president will have an unusual degree of influence here. How so?”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“If it Yeah, there's two ways that they could do it a little bit more quickly. One is proposed rules. They can basically just not do a final rule unless they're required by law to do it. And then the other is actually for rules that have become final recently. There is this thing called the Congressional Review Act, which basically allows Congress early next year to undo regulations that were enacted or implemented basically starting kind of around June of this year. We'll see, you know, but there could be some action on that front as well.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Are going to take a while to sort out. Basically, the story is that if any regulation is final and was finalized before call it like May, June of this year, they're going to have to go through the entire regulatory process again.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Speeding up approvals and sort of streamlining things. So that was, in fact, one of the key things in Mr. Trump's transition documents that have just been posted in the last few days. On the labor side, there's been focus on the overtime rule, for instance, which is just coming through its final form from the Obama administration right now. I think it's pretty likely that they would want to make some adjustments to those regulations. On the financial side, there are a variety of different things out there. One, for instance, is the fiduciary rule, which is actually also Department of Labor rule, but deals with retirement accounts and so on. That's been a particular focus, but there probably will be other things as well. And then even on the energy and environment side, there's been a lot of discussion of EPA regs in particular maybe fighting some of the regulations related to carbon emissions, the clean power plant, for instance. So, you know, and all of these things.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“So, I mean, we've seen a variety of different things highlighted by people around the Trump campaign, who in some cases have moved into the transition, in many cases are just still kind of advisors. And so, you know, those things range from, you mentioned drug safety. So there's discussion of looking at the FDA. There's been a lot of discussion.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“So, what about regulation more broadly? I mean, Mr. Trump opposed regulation throughout his campaign, talked about the overbearing regulators and overbearing regulation. Where might he start? I mean, there's a lot of regulation. There's food safety, drug safety, there's obviously regulation of the financial industry. Where might you see the impacts play out quickly?”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Exactly. Those are places where you would expect to see a hit on the other side. And so even though initially you would probably have a little bit of a boost to domestic production and for that matter GDP over the long run, we're skeptical that that would actually be a positive and you could end up seeing actually a negative outcome from that.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Exactly, right? Exactly Longer term, if all of this were to play out, you would have basically two big offsets to that one would be that U.S. trade policy doesn't happen in isolation and there would be retaliation from whatever country. So let's say if we apply tariffs on China, they're going to apply tariffs on us. We saw that you mentioned the steel tariffs earlier. We've seen that even just with these sort of smaller things where there is this tit for tat.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Also, push prices up. And so overall, if we take just even a scaled down version of what Trump has proposed, you're adding at least a few tenths to inflation. That probably prompts a Fed response. And so you get a little bit of a sort of a negative effect from that. On growth, it's actually...”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Well, and because, frankly, I mean, I think Mr. Trump's proposals during the campaigns were so far away from what other Republican candidates have talked about in the past in terms of trade restrictions on certain countries or getting out of trade deals, et cetera, that people are just, I think, having a hard time figuring out how much of this is real and how much is not. But if we assume that some of it is real, and our working assumption is that maybe a smaller increase in tariffs could happen, even though we wouldn't expect the full range of Trump's proposals during the campaign to take effect, then I guess bottom line is number one and probably most importantly, it would be inflationary. And so you would end up seeing basically import prices rise as a result. You would probably see some production shift domestically, not a lot, but maybe a little bit. And the cost differential there is going to be a lot of...”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“It's always been going down more or less. So in general, I should start out by saying there's a tremendous amount of uncertainty around what's going to happen on trade policy. I think probably more than a lot of these other areas.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“You mentioned trade as one area where the present has pretty wide latitude to act on his own. Share some of your insights from your colleagues at GS Research on what more sort of protection has been for lack of a better phrase might mean for the economy and what that might even look like because we haven't really seen that in this country. We've seen a little bit of adjusting of tariffs in the steel sector last decade, but we haven't seen a full scale sort of raising of tariffs in a long time, all the directions been in the other. It's always been going.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“After the midterm election So, you know, so I think it's going to take a while. We saw a pretty like right after the election, we saw a pretty sharp reaction in healthcare stocks, basically assuming that a lot of this money was going to go away. So if you look at hospitals, for instance, which really depend on a lot of this, you saw a very negative reaction. But in the end, I'm not sure that actually most of this money goes away. It's just going to be, I think it's going to be redistributed.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“And maybe so on the tax side, instead of, for instance, doing a sliding scale subsidy where people with lower incomes get a really big subsidy, people with higher incomes get little subsidy, maybe that they end up just doing sort of like a flat subsidy and everybody gets a certain amount. So there are proposals like that. I mean, I think from the market perspective and for that matter from the economic perspective, the biggest question is going to be, is there a significant pullback in just the total amount that's being spent on healthcare? It seems unlikely that it's going to happen if you work under the assumption that they're not going to try to pull coverage away from the people who are currently getting it. And that is kind of my general assumption. Now, as long as”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“But under a Republican administration, maybe they'll actually be willing to do some of that. So overall, I mean, look, there's a ton of uncertainty about this. I guess I would say if our starting assumption is that you're not going to see a Republican Congress and administration pull coverage away from 20 million people, then they're still going to have to spend most of the money that's currently being spent.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“The block ramp. And so the funny note, the funny thing on that is that on the one side, you would say, well, block grants are usually intended to save money and to ultimately reduce Medicaid spending. And they probably would over time do that compared to just current law. At the same time, there were actually a number of states that have been holding back and expanding Medicaid because of the politics around it.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Instead of having the exchanges that exist right now where individuals can go in, pick a plan, the government will pay for part of it, they'll pay for the rest of it. Instead of that, maybe you'd have more of a sort of a free market system not organized by the government so much, but you'd still have tax credits ultimately paying for it on the Medicaid expansion, instead of having basically a set expansion that the federal government lays out, you have a proposal to basically give the states the money and they can kind of go do what they want with it.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Those are fiscal issues ultimately, and so they can be dealt with with a simple majority. There are a bunch of other issues, including some that President-elect Trump has already said he wants to preserve. So as an example, the ability for people who have pre-existing health conditions to get coverage without having to pay really, really high premiums are just getting denied entirely. Those would need 60 votes to change because they are non-fiscal issues in the end. And so the question is going to be, are they actually able to put together a new package that replaces the existing law without spending even more money preserving roughly the same amount of coverage that is also in keeping with kind of Republican principles? And it's going to be a pretty difficult thing to do. I mean, we've seen some hints about what this might be.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“So that one's going to be really complicated. The simple version is that Republicans have the ability to undo most, but not all of Obamacare. Most meaning all of the fiscal pieces, so the tax credits to buy health insurance, the big expansion of Medicaid, which provided a lot of the total coverage expansion.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, they needed repatriation. They need to pay for the rest of it. A big focus for the Republicans in Congress and to some extent President Electron in his campaign was health care. And specifically, they've talked about repealing the Affordable Care Act, which is another massive undertaking. How might that play out? And what are the implications for people investors in the healthcare sector or businesses operating in the healthcare sector?”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“So the range was five and a quarterback then. Trump's rate now is 10 proposed. The House Republicans have something lower between 3 and 8 percent depending on the details. And so, you know, I think there's a general sense that doing something like this makes sense. But again, the question is going to be, can they get kind of comprehensive at least corporate tax reform done if they can't get the tax reform piece done? I guess I'm a little bit skeptical that they're going to do the repatriation on its own because they really need that to pay for the rest of it.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“They did do it once before, and we. And the big difference is that the last time around it was voluntary. This time it would be mandatory. So last time around you had companies repatriate a little bit over $300 billion.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Right, and that's where the repatriation thing comes in, too. So there, You've got $2.9 trillion in earnings that U.S. companies have accumulated overseas that have not been taxed by the U.S. Not all that is in cash, but probably over a trillion dollars of it is in cash. And so the question here is, you know, how do you deal with that existing set of earnings before you move to the new system? And so if they can tax that as a means of closing the books out on the old system, that'll generate a decent amount of revenue that then they can use they”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“That much harder, yeah. And with corporate reform, you do have the argument made constantly by companies that the United States has a unique system, an extraterritorial system, and these days very high rates relative to the rest of the G8 in the developed world.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Right, so getting rid of the deduction for corporate interest expense, changing the way that companies depreciate, and then also a slew of things on the international side, which could end up generating some revenue too, although there are things working in both directions. And so I think from the perspective of either the details in terms of the rates and so on or the magnitude, I think probably it ends up being scaled down from what Trump has. But at the same time, if there's one thing that seems like it's probably going to happen next year, it's some type of tax legislation. And I would think that the corporate side probably ends up being easier than the individual side just because, I mean, as difficult as corporate reform might be, individual reform is that much harder.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“I think a reshaping of the corporate tax code is pretty likely with this Congress. The question is, will it actually be what Trump has proposed, both in terms of the magnitude and then also just for that matter, in terms of the details? First, in terms of the magnitude, his plan is more expensive. It's expensive, more expensive in part because it's just a lower rate. And in part because in the plan that was put out during the campaign doesn't actually take away some of the other incentives that corporations currently get. And so without doing that kind of reform aspect, you end up basically just getting a lower rate and therefore a bigger revenue reduction. By contrast, if you look at Paul Ryan's plan, for instance, and so this is the House Republican plan, the rate isn't as low, so it would be 20% instead of Trump's 15%.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Let's get back to taxes for a second. You talked about the difficulty of passing a comprehensive bill in the short term. Let's talk about some of the particulars. President-elect Trump proposed rather significant changes to the corporate tax code, including a provision, which we talked about briefly for repatriating cash from profits that U.S. corporations earn overseas and dropping the corporate rate down to 15%. Is that kind of dramatic reshaping of the corporate tax code something that could get done with this Congress?”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Of higher GDP. Yeah, I know. That's the point, right? But then the sort of the flip side to that is you're probably also going to have a Fed response where they then are hiking rates more quickly because they're seeing the unemployment rate decline. They're seeing a little bit more inflation. And so they're kind of pulling out of accommodative monetary policy more quickly than they otherwise would, which would offset some of that positive growth effect.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“So, yeah, that's a good question. I mean, basically, where we think this comes out is that you have a boost to employment, which means an even lower unemployment rate. You probably have at least a moderate uptick in inflation as a result of this. And those two things together basically mean that the Fed ends up raising rates or raising rates further than they would otherwise or more quickly than they would otherwise as a result. So I think from an economic perspective, in the very near term, the fiscal piece alone could be worth, you know, in our view, something like half a point of GDP each year for the next couple of years, something like that.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Infrastructure spending obviously can create jobs, and that's been a good argument for over time. But as your colleagues in Goldman Sachs research have pointed out, the U.S. economy has just about reached full employment today. What are the implications of fiscal spending of any sort, really, but especially infrastructure spending with employment at current levels?”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“This probably would be positive if it happened. You could also probably do some spending on infrastructure, and that would be positive. But either way, it's going to take a while for this to actually affect the economy. We don't really see a big effect. Well, we see virtually no effect in 2017 and probably only a small effect in 2018. And then from there, it's really just going to depend a lot more on the specifics of the deal and how big it is.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Not uncontroversial, and so the trick with this plan is that these projects all need to turn a profit. They need to make money. So that's going to be a lot different from the typical sort of federal spending where you have local roads financed by state and local government. You have interstate roads and other sort of some public transit things, et cetera, financed by the federal government. And all of that is not intended to generate a return in terms of specific projects. Those are financed through the gasoline tax, et cetera. And so this is a different type of infrastructure spending than what the federal government is typically used to. It's not to say that it can't happen, but it's probably going to take a lot more planning than, say, just adding another $50 billion to the highway bill or something like that. There's also probably a limit to how much of that you can really do, at least do quickly. And so our general take is that, you know,”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Because you're going to need people to plan all of these things basically from scratch And there are certain types of infrastructure that I'm not sure going to be necessarily appropriate for that type of thing. So as an example, you look at state and local roads, for instance. I mean, the typical infrastructure plan would have the federal government give money to state governments, and then they spend it on whatever, in various forms of infrastructure, particularly transportation. This model would appear to be more of basically like a toll road type model.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“So, this isn't pure federal spending. And that has advantages and disadvantages. I mean, the advantage is that theoretically, if you have the private sector trying to decide the economics of each project, you might actually get some sort of higher return projects. The disadvantage is that it's probably going to take longer.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT
“Right, so the proposal is basically $100 billion a year in additional infrastructure investment. But one thing about this proposal, which isn't, I don't think totally well known, is at least if we look at the proposal that came out from a few of his advisors, it mostly involves a small amount of federal tax credits and then a large amount of private investment that's incentivized by those tax credits.”
2016-11-17 · Goldman Sachs Exchanges · Taxes, Trade and More in a Trump Presidency · IDENTIFIED FROM THE TRANSCRIPT