Barry Ritholtz: America, Land Of The Pothole

Ted

FYI: (The Linkster votes yes for an increase in the gas tax)
Get in your car and go for a drive just about anywhere in the U.S. You will be confronted with a transportation system desperately in need of a reboot. I'm not referring to a full upgrade to smart roads -- the sensor-driven intelligent system that promises to move vehicles more cheaply and efficiently. Rather, I refer to essential repairs: Filling potholes, basic maintenance.

In the U.S., we have allowed a transportation grid that was once the envy of the world to become an embarrassing wreck.

Regards,
Ted
http://www.bloombergview.com/articles/2015-04-27/failure-to-raise-gas-tax-leaves-u-s-roads-in-ruins

MJG

Hi Ted,

Like you, I would not take issue with an increase in the Federal gasoline tax. It has been unchanged since the early 1990s without inflation adjustments. And the Feds now do spend the fuel funds that go into the Trust on interstate highway projects ( they didn't for some earlier periods). Eisenhower had it right in the 1950s when he advocated for strong infrastructure programs. That boosts the national economy.

My issue is more with the individual State's gas tax structure and philosophy, particularly here in California which is at the top of States in that regard. The issue is that these taxes are not dedicated to roadway improvements. They serve more general purposes. A few years ago, California did reduce the gasoline tax burden. That was only minor relief given the State rates compared to the stable, and now outdated, Federal level.

Thanks for the article.

Best Wishes.

Ted

@MFO Members: California, the land of raisins and nuts
Regards,
Ted

Total US Fuel Taxes By State
http://www.californiagasprices.com/tax_info.aspx

JohnChisum

California is not alone in using gasoline taxes for purposes other than roads. Washington state does the same thing. It all goes into the general fund.

BenWP

Here in MI, we are faced with a ballot proposition to amend the constitution to increase the sales tax from 6% to 7%. Our spineless legislators would not simply raise taxes to fix the roads, but are giving us a poorly worded and confusing proposition that purports to fix the roads, but treats several other matters (school funding, earned income tax credit, punishment for driving a hybrid or electric car, etc.) that will result in the voters taking their eye off the ball. I think most voters want the roads fixed, but they don't want to be jerked around by ineffective politicians. Many of my friends are voting no.

Crash

Years ago, I drove my old Chevette on New Brunswick's roads in the early Spring. I was holding my breath, waiting for the car to fall into pieces underneath me because of the potholes. But these were exceptionally numerous and deep. They could have served as VW Beetle traps. Massachusetts now has roads that do not qualify as roads, if what you're looking for is actual PAVEMENT. When there's no oncoming traffic, I just ignore the center line. It's effing ridiculous. I drive and jump and twist to attempt to find pavement. And we pay taxes for WHAT?