STEPHEN MOORE: A Surprising Strategy to Fund Trump’s Tax Cuts You Haven’t Heard About

By Stephen Moore |

The federal government possesses a vast array of assets, ranging from land and buildings to patent rights and mineral rights. These untapped resources potentially hold substantial financial value, estimated at over $1 trillion, and possibly as high as $10 trillion, if sold wisely.

Such sales offer a unique opportunity to reduce the national debt, which currently stands at approximately $35 trillion. The focus of these transactions should be on non-environmentally sensitive properties, ensuring that they benefit American citizens and businesses.

One particularly lucrative asset is the electromagnetic spectrum, which underpins critical communications technologies like mobile phones and Wi-Fi. Historical data shows that spectrum auctions have previously generated more than $100 billion for the U.S. Treasury, indicating significant financial potential in future rounds.

The upcoming auctions could yield at least another $100 billion by leasing or selling portions of the spectrum that the military or other federal agencies no longer need. This revenue could play a pivotal role in offsetting any perceived losses tied to making the Trump tax cuts permanent.

A recent report by NERA points to the economic benefits of auctioning mid-band spectrum, predicting a boost to the U.S. GDP by over $260 billion and the creation of 1.5 million jobs. Historically, Congress has utilized funds raised from spectrum auctions to support tax cuts, a practice that merits continuation.

During a recent hearing, House Energy and Commerce Subcommittee Chairman Richard Hudson underscored the importance of effectively allocating spectrum to support American innovation and national security. He noted the success of the government’s 30-year history with spectrum auctions, which favor an open and transparent process over bureaucratic decision-making.

Such auctions diminish the likelihood of politically motivated allocations, ensuring that spectrum is utilized efficiently by those who value it most. Moreover, as the global landscape shifts toward wireless connectivity, maintaining robust infrastructure becomes essential.

With advancements in telecommunications, the urgency for timely spectrum auctions cannot be overstated. China’s rapid expansion of its 5G network is a stark reminder of the competitive threat faced by the United States. Reports indicate that China’s 5G infrastructure now spans every city and town, as well as over 90 percent of villages.

Without proactive measures, the U.S. risks falling further behind in technological advancements. Thus, conducting spectrum auctions, alongside leveraging other federal assets, is crucial for driving economic growth and supporting essential services.

By capitalizing on these opportunities, the government can not only alleviate its debt burden, but also foster a more prosperous future for American citizens. The rationale for these initiatives is clear and compelling.