The Need for a Gas-Tax Increase
Last week Congress declared the gas tax increase dead with the support of U. S. Secretary of Transportation Ray LaHood. While the gas tax is far from perfect, its rejection is symbolic of Congress’ failure to adequately address the problem. Rejection of this tax at this time because we need to find a “better” solution only kicks the problem down the congested road and ignores the American Society of Civil Engineers' estimated five-year funding requirement of $960 billion for bridges and roads.
“Only a long-term transportation bill will truly spur employment in this country and in the construction industry, now facing an incredible 20.1% unemployment rate,” U.S. Rep. John Mica (R-Fla.), the ranking Republican on the House Committee on Transportation and Infrastructure, said in a press statement recently. Mica's statement is certainly true, but Congress needs to do something now; not just talk about it.
No one wants to pay more taxes, but if we want our roads to work and be safe, then all stakeholders -- including all levels of government and users -- must make the necessary investment. I’m a fiscal conservative, and as such I’m in favor of less government spending, but investing in our infrastructure is an investment, not an expense. Avoiding necessary capital investments only increases expenditures later. The current spending level of $70.3 billion for highway capital improvements is well below the $186 billion a year that is needed.
The failure to fund our roads and bridges properly is costing every motorist $710 a year sitting in traffic and another $333 in repairs as a result of poor road conditions, according to information included on ASCE's website. Worse, it’s estimated that poor road conditions significantly impact one-third of traffic fatalities. To the families of those individuals, the cost of safe roads is priceless.
In short, our current road conditions are costing every motorist more than $1,000 a year, yet a 5-cent-per-gallon tax increase would cost most drivers less than $50 a year.
It’s time we stop admiring the problem while sitting in traffic and start fixing it!
The solution requires bold leadership at all levels. The leaders must create a vision and establish priorities. We can’t afford to waste money. The government continues to waste billions on low-priority projects that deliver little value to the overall community. High-priority projects would produce savings for all stakeholders, thus making it easier to fund future projects. However, when money is squandered, there are no benefits, except the short-term benefits to those actually building the road.
What the industry needs is a significant increase in the investment in our nation’s highway system. This will benefit the community by reducing delays and accidents, while at the same time stimulating the economy by creating jobs for the construction industry.
It’s time the construction industry takes action. It needs to take a greater leadership role in our infrastructure battle. It needs to turn lose its innovative capabilities to find better solutions; specifically lower-cost processes through the implementation of lean practices and more efficient designs and focus on total life-cycle costs. But it also must take a more active role in educating the public and government officials. We must hold our government leaders accountable for making sound capital investment decisions.
Do I think this approach will be easy? Do I think telling taxpayers they need to pay more for their roads will be popular? No, I don’t. However, sitting back and complaining about how bad things are doesn’t make sense, either. The construction industry has some very talented people; it’s time we push that talent totally outside its comfort zone to maximize the value the industry delivers. We must start thinking of ourselves as builders – not of buildings and roads, but of a nation!
Ted Garrison is a construction industry expert and civil engineer with more than 25 years of construction experience. During the last 12 years, he has authored Strategic Planning for Contractors and co-authored five other books on marketing, sales, customer service and leadership. Garrison also is the host of the Internet radio program, New Construction Strategies, www.NCS30.com, where he conducts weekly interviews of experts within the construction industry. He can be reached at growing@tedgarrison.com.
Your looking for congress to fix our problems ? You may understand construction, but certainly not government. Every government program that exists is a completely bankrupt failure....
August 9, 2010
Your looking for congress to fix our problems ? You may understand construction, but certainly not government. Every government program that exists is a completely bankrupt failure...post office, social security, fannie & freddie mac, medicare, medicaid....to name just a few...choose any government run agency & its a failure...and the socialist regimes 800 billion stimulus was such a great success.......you either have your hands in our pockets or are a complete idiot to give another five cents.
Okay Mr. Anonymous: If you are so smart, how would you recommend that our roads and bridges get built? Everyone is interested in reading your response, because we are all looking for ...
August 9, 2010
Okay Mr. Anonymous: If you are so smart, how would you recommend that our roads and bridges get built? Everyone is interested in reading your response, because we are all looking for good ideas. However, if you read the article carefully, I didn't suggest we rely totally on the government, because I agree the government is not the solution, but we do need to raise the funds from some source, but the industry and taxpayers need to make sure the money is spend wisely. I did mention we need to eliminate the wasteful projects sponsored by the government. Further, I challenged the construction industry to take a more active roll to improve the process. The ball is in your court - how about providing some sounds solutions to fix our failing infrastructure -- not just criticize other people's ideas. If you have any good ideas I'm happy to promote them -- my only goal is to fix the infrastructure because it's costing us a fortune not too.
The US infrastructure is falling apart like a nickel mop. I agree with Ted that a modest increase in the gas tax, say $.10/gallon at the pump plus a relaxation in the regulations on bou...
August 9, 2010
The US infrastructure is falling apart like a nickel mop. I agree with Ted that a modest increase in the gas tax, say $.10/gallon at the pump plus a relaxation in the regulations on boutique fuels in states like California need to be enacted soon. The reason we are in the mess we're in is because of Congress and the states' nonactions in the 1980's. Deferred maintenance was the mantra espoused by the politicians.
In his latest, "America Goes Dark," Paul Krugman discusses the current impacts and long-term ramifications from decades of anti-tax/anti-government politics. <a href="http://tinyurl.com...
August 10, 2010
In his latest, "America Goes Dark," Paul Krugman discusses the current impacts and long-term ramifications from decades of anti-tax/anti-government politics. http://tinyurl.com/2vogj8m
Excerpt: "And what about the economy’s future? Everything we know about economic growth says that a well-educated population and high-quality infrastructure are crucial. Emerging nations are making huge efforts to upgrade their roads, their ports and their schools. Yet in America we’re going backward.... So the end result of the long campaign against government is that we’ve taken a disastrously wrong turn. America is now on the unlit, unpaved road to nowhere."
Excerpt: "And what about the economy’s future? Everything we know about economic growth says that a well-educated population and high-quality infrastructure are crucial. Emerging nations are making huge efforts to upgrade their roads, their ports and their schools. Yet in America we’re going backward.... So the end result of the long campaign against government is that we’ve taken a disastrously wrong turn. America is now on the unlit, unpaved road to nowhere."
Three of my Radio Interviews with Congressman on our Infrastructure shed some interesting light on the challenges. While no one will probably agree with everything they say - education ...
August 10, 2010
Three of my Radio Interviews with Congressman on our Infrastructure shed some interesting light on the challenges. While no one will probably agree with everything they say - education about what the conditions are is a critical first step in defining the problems so they can be fixed. Congressman Oberstar (MN- D)is the chairman of the Transportation and Infrastructure Committee, Congressman Mica (FL-R) is the Republican leader of that committee & Congressman Duncan is the on that committee and the Ranking Republican on the subcommittee on Highways and Transit.
http://www.Jackstreet.com/Jackstreet/WCON.Oberstar.cfm
http://www.Jackstreet.com/Jackstreet/WCON.Mica2.cfm
http://www.Jackstreet.com/Jackstreet/WCON.Duncan.cfm
http://www.Jackstreet.com/Jackstreet/WCON.Oberstar.cfm
http://www.Jackstreet.com/Jackstreet/WCON.Mica2.cfm
http://www.Jackstreet.com/Jackstreet/WCON.Duncan.cfm
Ted, I respect and appreciate your passion to fix the infrastructure of the country. I share it. The current status is a travesty. But, U.S. and state gasoline taxes have been in pla...
August 10, 2010
Ted, I respect and appreciate your passion to fix the infrastructure of the country. I share it. The current status is a travesty. But, U.S. and state gasoline taxes have been in place for years yet both our national and state governments have diverted those funds for years to other "pet" projects or entitlement programs. I live in California where the Gov. and Legislature have been stealing highway funds for years with impunity. With this history, why should we trust these statesmen and women to do the right thing with new funds when they have been derelict with billions and billions of dollars in the past. Do you really trust them to do the right thing with these "new" funds? For anyone to suggest that we have had anti-tax/anti-government movement in place is ridiculous. That goes for Paul Krugman and Scott Judy if he buys into Dr. Krugman's tomfoolery. I wish we did have such a movement in place. George W. Bush was one of the greatest disappointments when it comes to spending. Obama is without peer. Spending isn't the problem. There is plenty of spending. But, where is the money directed? If it isn't for its purpose, fix that. I am not for more taxes that will simply be directed toward a purpose that was not the original intent be it roads, bridges or anything else.
Wayne - I certainly can't disagree with your comments. Dedicated funds must be dedicated. If legistators or presidents want to steal the money we should toss them out of office regard...
August 10, 2010
Wayne - I certainly can't disagree with your comments. Dedicated funds must be dedicated. If legistators or presidents want to steal the money we should toss them out of office regardless of the party. That's why the message is it takes a partnership, but the industry and the rest of the tax payers must hold the politicians accountable. They seem to think our tax dollars are their fund to be used to get elected or help their supporters. Well - if make them accountable for taking care of the infrastructure and they don't we should retire them.
Although you think you are a "fiscal Conservative" the reality is your thought process is that of a liberal. Liberalism's solution to everything is throw money at it. The war on pover...
August 10, 2010
Although you think you are a "fiscal Conservative" the reality is your thought process is that of a liberal. Liberalism's solution to everything is throw money at it. The war on poverty, big city school systems, social security, the post office, fannie & freddie mac, on & on.....what have the trillions of $'s politicians have stolen for these causes fixed ? absolutely nothing, and now they have bankrupted us and sold our freedom like crack head prostitutes to the chinese.
So what if The American society of engineers wants 960 billion, produce something and earn it.....our country is bankrupt because liberal politicians just spend, spend, and spend, while we say ok and watch the trash hollywood provides us nightly. Wake up. It is fiscally impossible to pay off our current debt, yet you want to give them more money to spend ? Our prosperity and the freedom which created it are at great risk...if you were truely a conservative, you should not take that lightly...R
So what if The American society of engineers wants 960 billion, produce something and earn it.....our country is bankrupt because liberal politicians just spend, spend, and spend, while we say ok and watch the trash hollywood provides us nightly. Wake up. It is fiscally impossible to pay off our current debt, yet you want to give them more money to spend ? Our prosperity and the freedom which created it are at great risk...if you were truely a conservative, you should not take that lightly...R
Infrastructure investment is not a conservative or liberal issue. It's basic to a nation's prosperity. The USA's growth as a premier economic power was partially due to the creation o...
August 11, 2010
Infrastructure investment is not a conservative or liberal issue. It's basic to a nation's prosperity. The USA's growth as a premier economic power was partially due to the creation of a world-leading transporatation infrastructure in the 20th century. Every other advanced, prosperous nation on the planet spends far more on building and maintaining their infrastructure than the US does. China is busy rapidly building the infrastructure of the 21st century: highways, high-speed rail, airports. We're letting our 20th-century infrastructure languish. KEEP IN MIND: our infrastructure would need expansion and repair even if our population were static. But we've added 100 MILLION people to the US since 1964 and are projected to add another 100 MILLION by 2045. A nation either shuts its borders and focuses on low population growth -- or it plans for massive growth. WE'RE DOING NEITHER. But when solutions are built only by the private sector, they become patchwork and leave many regions ill-served. This is especially true for highway, water and electrical systems. We risk having the inadequate infrastructure of a third-world nation if we don't act FAST. Anyone who cares about the long-term prosperity of our nation should support infrastructure investment.
I'm suprised at some of the comments here about "liberal" spending. In the past, presidents usually raised taxes to fund wars. The last president slashed taxes and boosted spending to f...
August 11, 2010
I'm suprised at some of the comments here about "liberal" spending. In the past, presidents usually raised taxes to fund wars. The last president slashed taxes and boosted spending to fund wars (and a social security drug benefit), and asked no sacrifices of the public in return. In any case, infrastructure is vital to public health, safety and prosperity. Take the politics out of it. We all benefit from a modern infrastructure and suffer from a deteriorating one, and our kids will even more.
Gosh Ted, as a dirt-loving, tree-hugging hippie I usually disagree with much of what is said on the ENR blogs, but today you've impressed me. Is it such a novel idea to increase taxes ...
August 11, 2010
Gosh Ted, as a dirt-loving, tree-hugging hippie I usually disagree with much of what is said on the ENR blogs, but today you've impressed me. Is it such a novel idea to increase taxes AND decrease spending, kind of like getting a weekend gig and skipping the evenings out during the recession like so many Americans have over the last few years. Time for uncle Sam to start imitating his nieces and nephews on Main Street.
Raising gax taxes could also help get people off the road and cut down on carbon emissions. Keep your clunker; this could be a lot cheaper than everyone buying a Toyota Prius.
August 12, 2010
Raising gax taxes could also help get people off the road and cut down on carbon emissions. Keep your clunker; this could be a lot cheaper than everyone buying a Toyota Prius.
With all due respect to Ted, his fiscally conservative claim appears on shaky ground and his call for new taxes is ridiculous. With government already way too huge, new taxes only conti...
August 12, 2010
With all due respect to Ted, his fiscally conservative claim appears on shaky ground and his call for new taxes is ridiculous. With government already way too huge, new taxes only continues to feed the beast and doesn't address the real issues. What needs to happen is to reduce taxes, but reduce government spending and services even more. We don't need all the handouts, bailouts and cop outs the government seems to provide. As one post indicated, the government has a hard time running anything effectively, much less giving them another tax to waste.
For the most part, the states should be managing their infrastructure, not the Federal government. The Constitution doesn't allow for the Feds to control all the infrastructure, so the current gas taxes that amount to over 50% of the cost of a gallon are way more than necessary. The states have some of that tax money for their infrastructure, but the Feds should reduce their gas tax and focus the money only on Federal highways and bridges. Instead they waste the money on all kinds of pork.
I am against any new taxes until government shows me they are efficiently and effectively using the current taxes. Since they aren't and most likely won't be in the foreseeable future, why should we pay more? Additionally, since those of us who work pay for those who don't, our taxes should not be wasted, but should be reduced. We already pay more than we should by a long shot while others get by paying practically no tax at all. As Social Security, Medicare, Medicaid and other Federal programs show us, the Feds know how to bankrupt their programs, but can't seem to manage them effectively. It is ludicrous to call for more new taxes in light of these facts.
For the most part, the states should be managing their infrastructure, not the Federal government. The Constitution doesn't allow for the Feds to control all the infrastructure, so the current gas taxes that amount to over 50% of the cost of a gallon are way more than necessary. The states have some of that tax money for their infrastructure, but the Feds should reduce their gas tax and focus the money only on Federal highways and bridges. Instead they waste the money on all kinds of pork.
I am against any new taxes until government shows me they are efficiently and effectively using the current taxes. Since they aren't and most likely won't be in the foreseeable future, why should we pay more? Additionally, since those of us who work pay for those who don't, our taxes should not be wasted, but should be reduced. We already pay more than we should by a long shot while others get by paying practically no tax at all. As Social Security, Medicare, Medicaid and other Federal programs show us, the Feds know how to bankrupt their programs, but can't seem to manage them effectively. It is ludicrous to call for more new taxes in light of these facts.
It seems a few people have misunderstood my perspective. I'm not in favor of additional taxes - just a realignment of them. We need a dedicated tax or fees such as toll roads to build o...
August 13, 2010
It seems a few people have misunderstood my perspective. I'm not in favor of additional taxes - just a realignment of them. We need a dedicated tax or fees such as toll roads to build our infrastructure. Face it without funding these things will not get built. User or fees or dedicated taxes are basically the same thing - they build the infrastructure.
But totally agree other spend needs to be cut since most is frivilous spending - not an investment in our future. Black outs cost as reported in an FMI study from $25 billion to $150 billion a year - yet for about $75 billion we could fix the problem. Better to fix than waste the funds.
The trick is holding government accountable and not let them spend on useless stuff. However, to not invest infrastructure is like shooting ourself in the foot because while taxes will be lower - our expenses will increase due to delays, blackouts and the like.
The side benefit is that working on infrastructure would create thousands of jobs for the construction industry. Sensible economists say that one of the few places stimulus money should be spent is on infrastructure - because it's not just spending but its an investment.
Simply stating no new taxes without thought is dangerous. There are tons of taxes that should be eliminated and I think most agree. When I talk to CEO's on my radio program - one thing they said their boards have said don't stop investing in our people or in technology. The key word is investing - they didn't say don't reduce the size of the company party. Congress needs to stop spending for frivilous items and only spend money on investments. If we did that our taxes could come down and our operating expenses would go down at the same time making our businesses more competitive. The right investments are a win-win - but don't confuse that with eliminating waste which any sensible person should agree should be eliminated.
But totally agree other spend needs to be cut since most is frivilous spending - not an investment in our future. Black outs cost as reported in an FMI study from $25 billion to $150 billion a year - yet for about $75 billion we could fix the problem. Better to fix than waste the funds.
The trick is holding government accountable and not let them spend on useless stuff. However, to not invest infrastructure is like shooting ourself in the foot because while taxes will be lower - our expenses will increase due to delays, blackouts and the like.
The side benefit is that working on infrastructure would create thousands of jobs for the construction industry. Sensible economists say that one of the few places stimulus money should be spent is on infrastructure - because it's not just spending but its an investment.
Simply stating no new taxes without thought is dangerous. There are tons of taxes that should be eliminated and I think most agree. When I talk to CEO's on my radio program - one thing they said their boards have said don't stop investing in our people or in technology. The key word is investing - they didn't say don't reduce the size of the company party. Congress needs to stop spending for frivilous items and only spend money on investments. If we did that our taxes could come down and our operating expenses would go down at the same time making our businesses more competitive. The right investments are a win-win - but don't confuse that with eliminating waste which any sensible person should agree should be eliminated.
I'm stuck on one thing. I don't trust the bunch in Washinton at all. They wanted a trillion dollars to "stimulate" the economy. The minute you saw the list of things they would do with ...
August 17, 2010
I'm stuck on one thing. I don't trust the bunch in Washinton at all. They wanted a trillion dollars to "stimulate" the economy. The minute you saw the list of things they would do with the money you knew it would not help the economy. All they did was pay back thier friends. I don't want them raising taxes, shifting taxes or doing anything - except going back to Chicago.
Let's get someone we can trust a little bit in charge and then think about how to fix something.
Let's get someone we can trust a little bit in charge and then think about how to fix something.
Interesting ENR story re: bipartisan National Transportation Policy Project's latest recommendations. <a href="http://tinyurl.com/24cvmkb" rel='nofollow'>http://tinyurl.com/24cvmkb</a>...
August 18, 2010
Interesting ENR story re: bipartisan National Transportation Policy Project's latest recommendations. http://tinyurl.com/24cvmkb Excerpt:
"The project’s published recommendations emphasize a performance-based, results-rewarding approach to transportation programming. Some elements of the proposed new policy include:
* Focusing federal funds on national connections and metropolitan regions. Funds would flow directly to states on a mode-neutral basis for national systems of roads and rail.
* A funding program that distributes monies to areas with more than 200,000 people based on their share of the gross domestic product.
* A needs-based funding program for underserved, disadvantaged populations, both rural and urban.
* A bonus program that provides additional funds to states and regions based on demonstrated progress in meeting national goals, generally without dictating how those funds are to be spent.
"The goal is to demolish the silos among the different modes of transportation, says Emil Frankel, NTPP director of transportation policy. 'Our principle is mode-neutral on programs, not projects.'"
"The project’s published recommendations emphasize a performance-based, results-rewarding approach to transportation programming. Some elements of the proposed new policy include:
* Focusing federal funds on national connections and metropolitan regions. Funds would flow directly to states on a mode-neutral basis for national systems of roads and rail.
* A funding program that distributes monies to areas with more than 200,000 people based on their share of the gross domestic product.
* A needs-based funding program for underserved, disadvantaged populations, both rural and urban.
* A bonus program that provides additional funds to states and regions based on demonstrated progress in meeting national goals, generally without dictating how those funds are to be spent.
"The goal is to demolish the silos among the different modes of transportation, says Emil Frankel, NTPP director of transportation policy. 'Our principle is mode-neutral on programs, not projects.'"
I'm not sure if you're asking the correct question. Yes, we need energy, be it gasoline, wind, solar, or nuclear. I'm a licensed architect and I was once a nuclear-trained sailor. If Am...
August 19, 2010
I'm not sure if you're asking the correct question. Yes, we need energy, be it gasoline, wind, solar, or nuclear. I'm a licensed architect and I was once a nuclear-trained sailor. If Americans can miniaturize computers, I'm sure Americans can miniaturize these nuclear plants for automobiles. On the other hand, that would be as popular as a first-class seat on the Hindenburg. Serious, we know raising taxes and entrusting our money to a ballooning bureaucracy is unsustainable. As the Greeks know first-hand, more government is not the solution. If we as taxpayers give our money to the government to fix roads, they should do so. Period. End of story. If government is supposedly hiring the best and brightest (as this administration has often touted), we would be debating a different subject. If they can't do the job, they should let someone else do the job. Privatize the road system. In this way, we won't have "roads to nowhere" and endless earmarks and so-called "stimulus". Seriously folks. When does it end? Yes, I've been in the military. I know there's a lot of waste in government. Yes, our leaders are asleep at the wheel. The Europeans have a burdensome tax on gasoline and no one's rushing out buy Euros...
