Obama to call for infrastructure funding (by closing unfair tax loopholes)

[kpete]

Source: The Hill

Obama to call for infrastructure funding

By Justin Sink - 07/01/14 06:12 AM EDT
President Obama will urge Congress to fund the rapidly depleting Highway Trust Fund by eliminating corporate tax breaks during a speech Tuesday in Georgetown.

The president will argue “that by closing unfair tax loopholes for companies that ship profits overseas, we can invest in rebuilding our infrastructure,” according to a White House official.

The trust fund, which pays for state and federal highway projects, is running out of money thanks to declining revenues from gasoline taxes. Congress has not increased the 18.4 cent per gallon tax in some two decades, while fuel efficiency has been on the rise. Experts predict that the Transportation Department could run out of money for road projects by August, putting at risk hundreds of thousands of jobs and critical transportation projects.

The president could advocate a plan similar to that offered by Senate Finance Committee Chairman Ron Wyden (D-Ore.), who has proposed an $8 billion package that would keep the trust fund operating throughout the end of the year. Wyden’s plan is funded primarily through tougher




Read more: http://thehill.com/policy/transportation/211026-obama-to-call-for-infrastructure-funding

[lexx21]

1. Great idea...

But congress would never pass it. That would hurt their buddies and they can't have that.

[Duval]

2. We can only keep

hoping our "Congress" will finally put People ahead of "catering to the 1%". However, I will not be holding my breath. Of course the idea is another Great one for our country. Wondering if he will be able to act alone on this. btw, kpete, I try to read all of your posts as they are informative and never ever BS. Thank you.

[Distant Quasar]

5. How is this a blow to the 1 percent?

In effect, Obama is proposing that we move away from the gas tax and pay for highway improvements out of general tax funds. Who uses the highways the most intensively? Big corporations that ship massive amounts of goods cross-country. Who benefits the most from lower taxes on gas in the long run? Oil companies. Not ordinary taxpayers who will be forced to pick up the massive costs of carbon pollution in the years ahead. Cheaper gas in the short run is no compensation for that.

Yes, some transnational corporations will get their tax breaks axed. How much do you want to bet they will be restored a year or two later? Meanwhile we will have shifted the burden of funding the highway system away from the heaviest users of the highway system onto everybody else. I guarantee you that will be permanent.

It's a short-run, regressive tactic masquerading as long-term, progressive foresight. No thank you.

[Distant Quasar]

4. Ugh. How about doing the right thing and raising the gas tax?

Yes, corporate tax loopholes should be closed. But not to subsidize the highway system. This perversely advantages car travel over less polluting transportation methods, at a time when we supposedly want to reduce carbon emissions. It also favors large corporations who ship sizable amounts of goods long distance (and thus put the most wear and tear on the highways) over local businesses.

I don't see why the public at large should have to subsidize these interests. Those who use the roads the most should contribute the most to their improvement. Hence the gasoline tax.