ECONOMIC REPORT OF THE PRESIDENT

International Economics (Petri and Plummer 2016) finds that TPP could
raise U.S. real income by 0.5 percent in 2030. The European Commission
(2013) estimates a roughly similar effect of TTIP on the U.S. economy,
an increase of 0.4 percent in GDP in 2027.
Investments in surface transportation infrastructure. The
Administration recognizes that investments in infrastructure support
economic growth by creating jobs, boosting productivity, and strengthening
the manufacturing sector. In December 2015, the bipartisan Fixing
America’s Surface Transportation Act (H.R. 22), which authorizes a $17.8
billion increase in surface transportation investment over five years, was
enacted into law. This funding is an important down payment, but the
country must further transform our transportation system to achieve a
cleaner, safer transportation future. The President’s FY 2017 budget calls
for $32 billion per year over 10 years to support innovative programs that
make our communities more livable and sustainable. The IMF (2014)
estimates that given the current underutilization of resources in many
advanced economies, a 1 percent of GDP permanent increase in public
infrastructure investment could help increase output by as much as 2.5
percent after 10 years. See Chapter 6 in this Report for more discussion.
Policies to boost labor force participation. The Administration
has pursued policies that enable all workers to participate in the labor
force to their full potential by making it easier for workers to balance
career and family responsibilities. The Administration’s FY 2017 budget
calls to triple the maximum child care tax credit to $3,000 for children
younger than 5, while enabling more middle-class families to receive the
maximum credit. In addition, every year since 2013, the President has
proposed a Federal-State partnership that would provide all 4-year olds
from low- and moderate-income families with access to high-quality
preschool. Finally, the budget calls to provide technical assistance to
help States implement and develop paid parental leave programs. These
policies would increase labor force participation and the level of output.
Policies to make college affordable. The Administration is committed
to making college affordable. The budget includes $60.8 billion
over 10 years to make the first two years of community college tuition
free for responsible students through a Federal-State cost sharing
partnership. This plan would increase America’s human capital and
productivity by enabling 2 million people who would not have enrolled
in college to earn an associate’s degree.
Business tax reform. President Obama’s framework for business
tax reform issued in 2012 sets out a series of changes that would
strengthen the economy in three main ways. First, by lowering average
tax rates, the President’s plan would boost investment in the United
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