Federal highway fund could run dry in two years

[TechBear_Seattle]

Source: Associated Press via the Seattle Times

WASHINGTON -- A cash crunch is fast approaching for the government trust fund that pays to build and repair highways and bridges.

The federal tax on a gallon of gas has not risen in 14 years, and Congress is reluctant to increase it. People are demanding more fuel-efficient vehicles -- less gasoline used, fewer dollars for the fund.

...

The fund provides the overwhelming bulk of federal dollars spent on highways. It gets its money mainly from the 18.4-cents-a-gallon excise tax that drivers pay at the pump.

With self-service regular now topping $3 a gallon nationwide, there is concern the price will reach a point at which people will get serious about cutting back on driving -- sending less money into the fund. Fuel-tax receipts dipped last summer when there was a spike in pump prices.

Read more: http://seattletimes.nwsource.com/html/nationworld/2003715483_gastax21.html

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Washington State has been facing similar problems. With no income tax (and thus complete reliance on sales and excise taxes for revenue), we have been facing major shortfalls to fund road maintenance and necessary repairs.

[KansDem]

1. Of course, cutting taxes for the wealthy and plunging us into an $11 million-an-hour war...

...had nothing to do with this.

But, have no fear! It's time to PRIVATIZE!!!

[TechBear_Seattle]

4. In theory, it actually has nothing to do with this

The Highway Trust Fund is theoretically like the Social Security Trust Fund: money from a specific source comes in, and that money can only be used for a very specific short list of things. If the money is being diverted, I have no doubt the diversion began under Reagan (who ransacked Social Security and turned it from a trust fund to a revolving door) and has been going on since.

[KansDem]

7. I can't help but think that if it wasn't for the Iraq War and tax cuts for the wealthy...

Congress couldn't somehow come up with the funds to fix the infrastructure. Was the interstate highway system as perceived by Eisenhower in the 1950s initially constructed with gasoline taxes only? I believe it was done so to assure stronger national security in allowing the military to move large numbers of equipment and personnel long distances in a short amount of time in case the Rooskies attacked us. I don't know, but when the USA is throwing billions away on illegal, unnecessary war while running huge deficits due to cutting taxes, it limits what we can do with regard to fixing domestic programs.

Of course, allowing this to happen can only open doors for crony capitalism (privatize roads) while adhering to Grover's "shrink government so it can be drowned in a bathtub" philosophy.

[Phredicles]

2. Crappy roads: another stepping-stone on the path to third-world status.

[Vogon_Glory]

10. Grover Norqist's Legacy..

Crappy roads are going to be part of Grover Norqist's legacy as his membership in Buckaroo Bush's Duck Soup Posse. Norqist fought against increasing the federal gasoline tax for years, as well as opposing various state efforts to raise their gasoline taxes. The chest-thumping, flag-waving, liberal-bashing, "rugged individualist" right-wingers contemplating new axles, replacement shock absorbers, new wheel rims, and new tires for the family automobile have their good buddy Grover Norqist to thank for the upcoming inroads on the family budget.

A railroad executive once described deferred maintenance as "the unreported liquidation of capital." We American citizen-taxpayers have had a lot of decaying infrastructure under the rule of the "MBA President" and his allies.

[AndyA]

3. But...is there enough money for Iraq?

Halliburton must be paid.

9/11 changed everything. America don't need no stinkin' highways.

:sarcasm:

[no_hypocrisy]

5. That'll be the justification for the sale nationwide of public highways to

private investors. No other way to have capital to maintain and build.

I hate these guys.

[liberal N proud]

6. That is exactly what they will do.

[SteelPenguin]

13. It's already happening

http://www.tribune-democrat.com/local/local_story_139232632.html

One of the main highway's across Pennsylvania is being seriously proposed to be privitized, by a Dem governor no less. It's not long before the entire interstate system becomes toll roads owned by private groups and we're back in the middle ages.

[alfredo]

16. And the profits will be sent to China or Qatar. Some might just

pocket the money, let the roads deteriorate, file bankruptcy, and walk away. You know, kind of like what GWB did to companies he ran.

[SteelPenguin]

19. Yeah it's gonna be a problem if it happens

Some of the heaviest truck traffic in the country is on that road. The truckers are already threatening to just avoid it altogether and take old state routes which would be really dangerous and bad for numerous reasons.

[alfredo]

20. I'm not sure that I would want some investment group

in charge of upkeep of my highways. The bottom line is king.

[shanti]

8. tip of the iceberg

we will be flat broke when * leaves office, believe that!

[tabasco]

21. We can only hope!

Flat broke would be quite an improvement after this criminal, profiteering cabal is ousted!

[villager]

9. highways are an ongoing subsidy for car makers, however...

if we didn't buy all their roads and pavement for them, they wouldn't have a viable "product."

I'd rather see a lot of that money go to rails....

[MHalblaub]

11. Why do you want to drive?

Just fly!

[2Design]

12. end military spending and trained killing of people around the world

get out of iraq and stop training our children to kill people and there will be plenty of money for infrastructure

[Javaman]

14. As the price of oil goes up so does the price of asphalt.

It's only going to get worse from here on out.

[damntexdem]

15. The Bushistas have us right on schedule.

Everything is set to blow up when Dubya leaves office.

Of course, impeachment might throw their timing off a bit.

[htuttle]

17. It's just like when the Mafia takes over a company or a union

While they're operating, they drain every penny off to their crony vendors, drain the pension funds and any other capital funds, then finally sell the whole thing off in a fire sale right before they dump it.

You can bet BushCo will be selling off the furniture in the White House before they're through...

[jazzjunkysue]

18. So we sold our souls for oil and now don't have roads to drive our SUV's on.

What a plan. I think I'll join the GOP.