Friday, January 10, 2020

Attachment - Our Nation’s Crumbling Infrastructure, March 6, 2019

For most states and localities, infrastructure is funded with federal fuel taxes, state fuel taxes, tolls and property taxes for neighborhood roads. Many states have increased their  fuel taxes to fund infrastructure deficits. States that belong to the Legislative Exchange Council are less likely to take this step, which is perilous. Our federal system allows states to mess themselves up, so we will not address this problem except to say that states who do not charge adequate taxes do not deserve an extra subsidy from federal funds because of their folly.

In the short term, tolls could be considered for states who will not responsibly increase their fuel taxes. The nature of these projects preclude their adoption on a national basis.  Their  use  is hardly universal. Local High Occupancy Toll or HOT lanes are created using local entrepreneurs, however are virtually empty most of the time. 

HOT lanes have become transportation for the wealthy, leaving the working class to deal with the crowded main highway system. While HOT lane providers do upgrade the infrastructure to adjacent lanes as well, their rush hour pricing and general disuse will not maintain public favor for long. These roads may help fund immediate infrastructure deficits, their pricing structure may not return promised revenue, which will end their  usefulness. 

For the present, the answer must be higher fuel taxes. They must also remain a direct excise rather than a proportion of fuel prices because prices vary from state to state. This would violate Article I, Section 8's prohibition requiring equal national excise taxes, although individual states could explore the idea. Regardless, the coalition for a higher national excise collapsed long ago, causing our infrastructure crisis.

The reason for this collapse is the end of earmarking. The late Senator John McCain (God rest his soul), was a driving force in the elimination of this funding tool, while Congressman Bud Schuster was its champion. 

Earmarks lost favor because of the bad publicity on Alaska's Bridge to Nowhere, which was necessary to reach a vital airport destination. Ironically, the road to the bridge was built and became the road to nowhere because it was part of the overall plan. Governor Sarah Palin's lack of courage in defending the project led to the downfall of earmarks and the coalition for higher fuel excise taxes. 

 Earmarks simply codified agreements by the local members of Congress and the Senate, the Federal Highway Administration and state and local government to plan specific projects rather than leave their planning solely up to the Department of Transportation. Without these constituencies, the natural constituency for higher fuel taxes could not hold out against general anti-tax sentiment. In essence, government stopped doing its job to represent the interest of society rather than its vocal anti-tax minority.

Bring back earmarks and projects will go forward and fuel taxes can be raised with little heartburn.

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