During President Trump’s State of the Union address on Tuesday he increased the price tag of his promised $1 trillion infrastructure plan to a whopping $1.5 trillion.
As recently as last week, President Trump told an audience of mayors that his administration is “working to rebuild our crumbling infrastructure by stimulating a $1 trillion investment, and that will actually, probably, end up being about $1.7 trillion.”
Whether the final number ends up being $1.5, $1.7, or even the original $1 trillion investment, a lot of questions remain.
According to White House officials, the federal government is expected to spend only about $200 billion in cash and tax credits, while state and local governments as well as private investors will be expected to pick up the remaining $1.3 trillion.
Getting $1.5 trillion in infrastructure spending while spending only $200 billion is leaving Congress scratching their heads.
Sen. James Lankford (R-Okla.) “$1.5 trillion, I think, kind of sucked the oxygen out of the room for a moment, as no one expected a number that big,” said Sen. James Lankford (R-Okla) according to Politico. “And the obvious thing is, where are we with debt and deficit and how are we going to be able to pull it together?”
Senate majority Whip John Cornyn (R-Texas) said it even simpler: “The question is, how are you gonna pay for it?”
A leaked memo last week showed that the Trump administration may be considering increasing tolls on existing roadways and leaning heavily on public-private partnerships. Some such partnerships – like the infamous Indiana Toll Roads – have had a checkered past. In fact, only 35 states even allow them.
The trucking industry is almost unanimous in its repudiation of new tolls. Even OOIDA and the ATA fall on the same side of this argument, both supporting an increase in fuel taxes over adding new tolls to existing roadways.
“If elected officials think a fuel tax increase would be unpopular, wait until Americans encounter more and higher tolling,” said OOIDA Acting-President Todd Spencer.
And while for most in the trucking industry, ‘infrastructure’ means roads and bridges, even a fully funded $1.5 trillion bill wouldn’t see all that money going to repairing our highways. Not only would it go to other transportation-related areas like airports, railroads, and canals; but also to other totally separate areas like our energy grid, power plants, water treatment and distribution systems, bike and pedestrian paths, internet and cellular infrastructure, and more.
Source: gobytrucknews, truckinginfo, truckinginfo, fleetowner, fleetowner, overdrive, ttnews, thehill, ttnews, fleetowner, politico
22 comments. Add a comment.
Yeah…our state pa already has local taxes high and property taxes high..people are selling property now because the taxes are so high already…that’s all politicians know how to do is raise taxes..we have people moving out of pa going to Texas..Cheaper..
That’s Sad..having to sell your home family property..
Michael Adams says
Prop 13 in Cali not perfect, but it helps. I remember stories of older folks getting kicked out of their homes for not paying taxes.
Donald Mickunas says
Funny, the politicians say there is no money for fixing roads and bridges yet I see lots of road crews doing just that. No money? Riiiggghhtttt.
There is a big difference between the normal, budgeted year to year road maintenance and pothole repair, and the big projects like the bridge replacements and major overhaul projects that require major bids to be awarded.
The normal road maintenance crews don’t have the equipment or skills to pull off the major deferred projects, and if they tried, and spent 3 years working on a special project, no one would be available to do the regular road maintenance, and they would quickly become unpassable.
So you have to hire lots of new people in order to take care of the regular maintenance and repair, and also work on the big projects, and that takes more money than they have in their budgets.
Robert Bowen says
We should be willing to help fix the national infrastructure. If you own something dont you take care of it?Well its your country too.
The state doesn’t own anything; the people own it which is why the taxes will go up.
If we stopped giving all our money to countries over seas we’d be a lot better off. Just look at how much we give away to everybody except ourselves. We could be living like kings…all of us. Instead we’re living in a borderline third world country situation. It has to stop! I will no longer give the Federal government my money!
This is what a President that doesn’t have a clue for the average working American does. Glad I didn’t vote, especially for him, he is a fool. What’s a billionaire know about the average working citizen anyways. He has no mind, heart or understanding, enough said. He us no leader he us a dictator and a fool.
Misti Adams says
Since you didn’t vote you gave up your right to complain one way or the other. Next time vote, then your preferred political party might have gotten into the White house giving you the right to voice an opinion on Our President. I voted giving me the right to state my political opinion.
Yeah. I’m disappointed in him saying private partnership…..translates to foreign ownership to me. That is not acceptable. Calling POTUS names is not going to get anybody anywhere. Please stick to the subject if you post here.
Well you can keep taxing the trucking industry for fuel tax and more toll roads and what do you end up with? Higher prices on freight distribution clothes, food, household items everything has to take their part in offsetting these taxes and toll roads prices. Then that fix’s the solution folks cannot afford to buy clothes food and other items they need to live. So we are screwed anyway you look at it the politicians need to quit giving their self raises and learn how to live like an average person!! Sorry if this doesn’t make sense to some folks but it damn sure does to me.
Johnny Karnofsky says
Instead of spending money on new projects, how about a state by state, highway by highway; audit of all open and active projects?
If a project is behind schedule, hold the contractors accountable for the delay with a $1M penalty for each day behind schedule they are without a valid reason. Give that contractor 30 days to get back on schedule or walk away to let other contractors bid on the remaining work. Refuse to allow any contractor bid on new work unless all other projects they are already working are on schedule as agreed.
Likewise, if a contractor is on time or ahead of schedule, reward that contractor with a $1M bonus for each day they are early on final completion.
I like the way you think. Perfectly said.
Simple fix stop paying trillions of dollars to other countries.
Yes, this is exactly what we expected and are afraid of. Lavish spending without any consequences is what he’s done his whole life. As someone else said: public/ private “partnerships” is better described as selling our country out. No more talk of passing debt to our grandchildren . Spending money like drunken sailors on tax cuts for themselves first (Apologies – my family is Navy). Will only end in disaster for people who work and fight for our country. Whenever you hear the word jobs, think – making rich corporations richer and more powerful, (if that’s even possible).
Get ready for a total cluster, if you think traffic is bad now, just wait.
As Dennis said above. All this reckless spending will lead to massive inflation which will hurt the working class and the poor more than anyone. And that is not to say I’m against spending on infrastructure. It’s just that it should have come before massive big beautiful tax cuts for the rich.
He has freedom of speech. Until the moderators think he doesn’t
tow the political speech clause.
No, this is a president who
has gone to bankruptcy many times. Daddy gave him his millions to get started,
and he has ripped off many people. It’s all on paper.
Entitlement and narcissism are rampant in this country. 1.7 trillion
in tax cuts to the rich?? Who pays for that?
The Highway fuel tax is the most logical tax, yet hasn’t been raised significantly since the 90’s.
Congress only fools the fools.
Robert Fallin says
its mostly true that its mostly fools that are fooled!
The flips side of costs going up for carriers is the drivers never see it. This is a driver participated forum right ?? OO’s pay taxes as companies do. Company drivers don’t pay squat. Furthermore, iI don’t quell freedom of speech. But if you think results come from name calling and finger pointing, you fit right in with D.C. and the political B.S. nonsense. Keep posting your school aged kid name calling and finger pointing.
Tax the rich