Final Thoughts: Will Trump’s Big Win Prove Too Taxing for Infrastructure?

For better or worse, depending on your income and situation, it looks like President Trump and the Republicans will win a big political victory with passage of their historic tax overhaul this week. No doubt, there will be a shakeout period during which the many complicated details of the measure will be scrutinized, and their effects debated. One unintended consequence has significant implications for the steel industry. Passage of a tax-relief measure with the potential to add $1.5 trillion to the federal deficit over the coming decade makes passage of a major infrastructure bill next year that much less likely.

“Whether the president will go forward with an infrastructure package, and whether the public will have an appetite for it, seems unlikely to me at this point,” said a respected industry economist, who asked not to be named because his personal views don’t necessarily reflect his organization’s. “The only way to get enough votes to pass an infrastructure bill would be to find agreement on a tax increase to pay for it or offsetting spending cuts. Neither of those seem to be in the cards.”