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Barry Ritholtz: The Odds Of Fixing U.S. Infrastructure Just Got Better
Good Luck with this. If I recall, Trump suggests $1.5 trillion for infrastructure, with $200 billion from Federal "sources" and remainder from state, local sources, as well as "private". State and local..........okay, and where is this money arriving from.....? A few years ago, Michigan had a proposal regarding gas tax to help rebuild Michigan roads. I know several hard core Republican, tax paying citizens who posted to their Facebook pages during this period, something to the effect of "Just say NO to higher taxes to repair the roads." I had, by chance; an opportunity to ask 2 of these folks "where did they expect these monies to arrive from to maintain/improve the roads?" Generally, they expected the monies to be appropriated from some other spending unit in the state budget. OK. As to the ability of local governments to help fund infrastructure costs, another good luck. Thousands of communities are already part of the FEMA, Safer Grant programs to help fund local police and fire units. Not enough local revenue, yes? I read an online report yesterday about one large community in Michigan closing a fire station and reducing staff by 1/3, as their 3rd Safer grant had been denied. Reminds me of the "shovel ready" crap from Obama/Biden, too. And the beat goes on.....
If I recall, Trump suggests $1.5 trillion for infrastructure, with $200 billion from Federal "sources" and remainder from state, local sources, as well as "private".
Just $1T (the $1.5T figure likely relates to the hole the new tax law is projected to blow in the national debt). But hey, what's a half trillion dollars between friends?
State and local..........okay, and where is this money arriving from.....? Especially since states now have to deal with their taxes hurting more (fewer people itemizing, and those who do have SaLT deductions capped). So they're less able to meet current budget needs, let alone allocate money for new projects.
I have an alternate suggestion, just as unlikely to be realized. We all know that Trump is pushing for an expanded military budget to renovate and upgrade American defenses, and that the interstate highway system, built as part of our military defense system (thanks, Ike) is in need of renovation and upgrading. Put 1 + 1 together, and ...
The money figure, yes; Gary Cohn stated: White House advisor Gary Cohn: Infrastructure the 'next leg of the stool' on Trump's agenda 9:53 AM ET Tue, 30 Jan 2018 | 01:54 President Donald Trump, in his State of the Union speech Tuesday, plans to discuss a $1.5 trillion infrastructure improvement plan, White House economic advisor Gary Cohn told CNBC. Aw, hell; msf........I read and heard $1 trillion in other places, too. Inflation will change the number anyway, yes? Take care of you and yours, Catch
My apologies, you're absolutely right. From the SOTU address:
"Tonight, I'm calling on Congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment that our country so desperately needs."
But note also that while Trump fudged the fed amount by using "generates", he never said $200B. Perhaps Trump meant 20% (which would be $300B). Who knows?
I've heard this song before. Nearly every state has cover of it in some form or another. One party verse is all about no new taxes, and in fact cut those that we have. The other says raise them to pay for this while not cutting the aid we supply to those who need it. The chorus follows something along the lines of the blame game. Don't know when people are going to rise up and say enough of this crap. Even here at home (MN) we've been unable to raise the gas tax since 1988 fore the aforementioned. Party on Garth.
Apparently people in most states have already risen up. Though not high enough.
Not sure what the aforementioned MN hike is. Pew graphic (see below) shows MN increase around 2012 (hard to get an exact year from a visual graph). That's consistent with this state of Minnesota page, showing the last hike in 2012 (from a law passed in 2008).
You are correct msf. I missed that one. My apologies.
"2008 Transportation Funding – Chapter 152 In February 2008, the Minnesota Legislature enacted major legislation affecting transportation funding for highways and transit as well as investment priorities. The Legislature increased the state’s Motor Vehicle Fuel Tax for the first time since 1988, increased the Motor Vehicle Registration Tax, and authorized an option of $.025 county sales taxes to develop and operate transitways in the Twin Cities Metropolitan Area and Greater Minnesota. The Legislature also authorized $1.83 billion in bonding over the 2009 to 2018 period to finance state highway related needs."
In total it amounted to a $0.03 raise over a 4-yr period.
You are correct msf. I missed that one. My apologies.
"2008 Transportation Funding – Chapter 152 [...]"
In total it amounted to a $0.03 raise over a 4-yr period.
Glad you could find a reference. I'm not sure where the 3 cents came from, though.
The table of gas tax changes that I linked to above (MOTOR FUEL TAX RATES PER GALLON: MINNESOTA) shows an increase of 8.5 cents from 2008 to 2012, with three cents being the largest single hike of the 4-yr phase in.
Here's an MPR blog confirming 8.5 cents: "The most recent bump came in 2008, when the Legislature overrode a veto by Gov. Tim Pawlenty to put an incremental gas tax increase of 8.5 cents per gallon into law. When the law was passed in 2008, it represented the largest gas tax in Minnesota’s recent history."
Comments
State and local..........okay, and where is this money arriving from.....?
A few years ago, Michigan had a proposal regarding gas tax to help rebuild Michigan roads. I know several hard core Republican, tax paying citizens who posted to their Facebook pages during this period, something to the effect of "Just say NO to higher taxes to repair the roads." I had, by chance; an opportunity to ask 2 of these folks "where did they expect these monies to arrive from to maintain/improve the roads?" Generally, they expected the monies to be appropriated from some other spending unit in the state budget. OK.
As to the ability of local governments to help fund infrastructure costs, another good luck.
Thousands of communities are already part of the FEMA, Safer Grant programs to help fund local police and fire units. Not enough local revenue, yes? I read an online report yesterday about one large community in Michigan closing a fire station and reducing staff by 1/3, as their 3rd Safer grant had been denied.
Reminds me of the "shovel ready" crap from Obama/Biden, too.
And the beat goes on.....
Just $1T (the $1.5T figure likely relates to the hole the new tax law is projected to blow in the national debt). But hey, what's a half trillion dollars between friends?
State and local..........okay, and where is this money arriving from.....?
Especially since states now have to deal with their taxes hurting more (fewer people itemizing, and those who do have SaLT deductions capped). So they're less able to meet current budget needs, let alone allocate money for new projects.
I have an alternate suggestion, just as unlikely to be realized. We all know that Trump is pushing for an expanded military budget to renovate and upgrade American defenses, and that the interstate highway system, built as part of our military defense system (thanks, Ike) is in need of renovation and upgrading. Put 1 + 1 together, and ...
The money figure, yes; Gary Cohn stated:
White House advisor Gary Cohn: Infrastructure the 'next leg of the stool' on Trump's agenda
9:53 AM ET Tue, 30 Jan 2018 | 01:54
President Donald Trump, in his State of the Union speech Tuesday, plans to discuss a $1.5 trillion infrastructure improvement plan, White House economic advisor Gary Cohn told CNBC.
Aw, hell; msf........I read and heard $1 trillion in other places, too. Inflation will change the number anyway, yes?
Take care of you and yours,
Catch
"Tonight, I'm calling on Congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment that our country so desperately needs."
But note also that while Trump fudged the fed amount by using "generates", he never said $200B. Perhaps Trump meant 20% (which would be $300B). Who knows?
One party verse is all about no new taxes, and in fact cut those that we have.
The other says raise them to pay for this while not cutting the aid we supply to those who need it.
The chorus follows something along the lines of the blame game.
Don't know when people are going to rise up and say enough of this crap. Even here at home (MN) we've been unable to raise the gas tax since 1988 fore the aforementioned. Party on Garth.
http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/07/26/reluctant-states-raise-gas-taxes-to-repair-roads (July 26, 2017)
Apparently people in most states have already risen up. Though not high enough.
Not sure what the aforementioned MN hike is. Pew graphic (see below) shows MN increase around 2012 (hard to get an exact year from a visual graph). That's consistent with this state of Minnesota page, showing the last hike in 2012 (from a law passed in 2008).
MOTOR FUEL TAX RATES PER GALLON: MINNESOTA
http://www.dot.state.mn.us/about/pdfs/historychart.pdf
"2008 Transportation Funding – Chapter 152
In February 2008, the Minnesota Legislature enacted major legislation affecting transportation funding for highways and transit as well as investment priorities. The Legislature increased the state’s Motor Vehicle Fuel Tax for the first time since 1988, increased the Motor Vehicle Registration Tax, and authorized an option of $.025 county sales taxes to develop and operate transitways in the Twin Cities Metropolitan Area and Greater Minnesota. The Legislature also authorized $1.83 billion in bonding over the 2009 to 2018 period to finance state highway related needs."
In total it amounted to a $0.03 raise over a 4-yr period.
http://www.businessinsider.com/trump-infrastructure-plan-dead-on-arrival-2018-1
http://nymag.com/daily/intelligencer/2018/02/trumps-infrastructure-plan-is-badly-built-sure-to-collapse.html
The table of gas tax changes that I linked to above (MOTOR FUEL TAX RATES PER GALLON: MINNESOTA) shows an increase of 8.5 cents from 2008 to 2012, with three cents being the largest single hike of the 4-yr phase in.
Here's an MPR blog confirming 8.5 cents: "The most recent bump came in 2008, when the Legislature overrode a veto by Gov. Tim Pawlenty to put an incremental gas tax increase of 8.5 cents per gallon into law. When the law was passed in 2008, it represented the largest gas tax in Minnesota’s recent history."
https://blogs.mprnews.org/capitol-view/2015/03/poligraph-largest-gas-tax-in-state-history/