US Congress seen paving way for private toll roads

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-06-30T133308Z_01_N30190298_RTRIDST_0_BIZFEATURE-HIGHWAYS-PICTURE.XML

SAN FRANCISCO, June 30 (Reuters) - The next road you travel -- and pay a toll to use -- could be privately owned.

Looking for ways to finance highway projects without hitting the public trough, the U.S. Congress appears set to pass a proposal to encourage private ownership of new toll roads.

The provision, part of the highway spending bill now being hammered out by a Senate and House conference committee, would allow private companies to raise up to $15 billion for highway projects with bonds that are exempt from federal income taxes.

While the proposal has broad support in Washington and the business community, the idea of private highways has incited grassroots opposition in some states, with some saying the government -- not a profit-seeking company -- is the proper owner of the public's roads.

<snip>

The move would also bring lucrative fees to Wall Street banks and others for underwriting and trading tax-exempt debt.

...more...

[lateo]

1. Here comes the "Ownership Society".

[WhoWantsToBeOccupied]

6. And now the private company can seize your house by eminent domain!

[genieroze]

37. Yup, the top 1% owns 99% of everything. eom

[getmeouttahere]

2. Yeah, let's make it even harder...

for people to get where they need to go...as if the gas prices aren't already doing that

This country is BEYOND FUBAR!!!

[underpants]

3. Who would police them?

Are there going to be rent-a-cops (God knows who) pulling people over?

Any idea how that would work?

[lachattefolle]

8. Well, in Europe there are toll booths at every possible exit if you are

driving on a toll road, so unless you run a barricade you have to pay up. I believe it's the same back East on their toll roads.

[FlaGranny]

4. Do private roads

need their own patrolmen? Who do the speeding fines go to? How about paramedic services? It opens up all kinds of possibiities if it's private property.

[muriel_volestrangler]

35. I don't see what the difference is

Policemen can keep order on private property when people aren't in cars; why should it be different when they're driving one? The same goes for paramedic services. Speeding fines aren't a matter of damaging public property - they are fines for increasing the danger to the rest of the public, so they would go to the stae, as they do on public roads.

[FlaGranny]

39. My point was that

will private companies be ALLOWED to have private services, not if they could use local police and paramedics. :-)

[Kolesar]

5. Libertarian bull

I recall that Michael Kinsley skewered the libertarian philosophy many years ago. Libertarians actually want private ownership of city streets and worked out an incredibly complicated system of fees.

[Cobalt Violet]

7. I wonder who's homes will be bulldozed for these roads for the rich?

:mad: :mad:

[atommom]

9. I don't trust private firms with that kind of responsibility.

I'd expect tolls to go up immediately, especially on highways that are heavily traveled. And as someone mentioned upthread, does that mean we'd have rent-a-cops patrolling those roads rather than the highway patrol? Whose jurisdiction would that be?

And could those private firms boost their profits by putting up more billboards along their roads? That's hardly a safety issue, but it would certainly be irritating. :eyes:

[punpirate]

10. So interesting, the language in this...

... "finance highway projects without hitting the public trough...."

The last I remember, federal public highway projects are financed through a federal tax on on-road use of fuel. It's a cumulative fund which is drawn on when federal highway appropriations are made--and that fund has several hundred billion available.

So, if they're looking for ways to privatize federal road-building, what have they got in mind for the Federal Highway Trust Fund? Hmmm?

[shanti]

11. it's probably in the queue

to be looted as well.:-(

[Gormy Cuss]

20. Trust fund?

Do you think the Federal Highway Trust Fund is anything but a bunch of IOUs like the SS trust fund? Oh for SOMEONE in Congress to point this out. It would make my day.

One of the looming problems with fuel tax revenue is the popularity of hybrids. If hybrid demand continues to grow and this low-fuel vehicle replaces the big gas guzzlers over the next ten years, revenue may not be sufficient. Some Western states already have proposals to shift their fuel taxes to a road use model, where all cars are assessed a fee per mile driven.

[punpirate]

24. I'm aware of what some western states are proposing...

... but the fund is in no danger of being depleted because of hybrids--look back to the events of the late `70s--there was no moratorium on road-building then, even though there was a pronounced shift to more economical cars--in part, because car sales increased shortly after the gas crises were over.

And, a significant part of those fuel taxes are being paid by commercial trucking, as are road use taxes.

The issue--being considered now in Oregon--is not one of increasing revenues (or so it is said), but of equitable taxation for road use and attendant wear. If it were just a matter of increasing revenues, they could make an increase in the state fuel tax. This legislation is largely being driven by the commercial firms trying to sell the mileage detection equipment essential to make the scheme work, and they've been doing their very best to distort accepted data which has been in existence for a very long time--that road wear is directly proportional to weight over the axles--that's why most states require commercial trucks to pay a use tax in addition to fuel tax.

There are a number of interests who would like to see the standard change to miles driven (which, on edit, I should add are some environmental groups which believe it will reduce congestion and fuel use, but I'm not sure that is borne out by statistics--most congestion is commuter-related and that's not likely to change), but, principal among them are the manufacturers of the equipment to detect mileage and compute tax at the pump--which some Oregon legislators assert would cost about $1500 per vehicle.

Cheers.

[Gormy Cuss]

25. delete

[anotherdrew]

40. plenty of money for roads, plus they plan to convert public to private

as quickly as possible.

[Bonhomme Richard]

12. Holy Shit. I never saw this one coming.

I guess if there is any way to make a buck.

Think I'll set up a toll booth just like the one in Blazing Saddles.
"Anybody got a dime?" Somebody ride back to camp and get a shitload of dimes."

[bballny]

13. This proposal

is similar to the concepts of the middle ages. During those times everything was privately owned and concept of government was just a thought. It was a feudal society. Republicans of the current era loves the idea of the middle class beholden to the moneyed interests. Power has changed from small armies and principalities to economic power but their views on human value is always the same. The moneyed interests have just moved child labor offshore. Because we have such a poor education of history most americans don't believe that we used to have children working in factories. Now it is in Bangladesh and Sri Lanka. After they revolt it will be in Africa. There are always people to exploit.

[Coventina]

15. Yep, that's the GOP agenda, 12th century all over again

Except with more pollution and more powerful weapons.

[AlGore-08.com]

19. Actually, I think they'd prefer the 11th Century to the 12th

The 12th Century brought us Christian Humanism and the Empress Maud.

But the 11th Century had El Cid, the Norman conquests and the first crusade (the only Crusade that was achieved its stated goals). That's why I think the target is the 11th Century...

[Coventina]

26. Good points, all. You are undoubtedly correct.

I just always think 12th because I'm a bit of a brother Cadfael fan.
Empress Maud play an important background bit in those stories, BTW.

[MetaTrope]

17. That's what the neocons have planned for America

Back to the middle ages...no problem, I've got my cart ready.

[htuttle]

14. Well, what do you know

And all this time I thought 'highwayman' was an obsolete career.

[stuckinlucky]

16. It's already happened

A private company leased the Chicago Skyway earlier this year. The lease included some restrictions on the dollar amount of the toll and the rate at which the company can raise them, but it's in private hands.

[silver10]

18. If the repukes hadn't purged the government treasury,

with financing the war and tax cuts for the rich, we WOULD be able to afford good infrastructure in this country.

This is great, instead of using government workers who get a decent salary and benefits - medical and pension, they'll create minimum wage workers who get little or no benefits - no medical and no retirement. And, the public will still have to pay the same amount of taxes, along with the high tolls. If I were a robber barron, this would all be great news - it's a win-win situation for them, a no brainer.

[Jose Diablo]

21. Look at the way cash can be laundered with these toll roads

it is a crooks wet dream, being able to launder cash with a toll road. The Republicans and Dino's will love it, I am sure.

Edit: Even better than a string of restaurants and coin laundries. Fits right in with the 'war on drugs'.

[Sin]

22. Lots more adopted signs.

coming soon to a stretch of highway near you.

"This stretch high way has been adopted by so and so for litter control next 5 miles"

"This stretch of high way has has also been adopted by walmart, rolling back toll prices every day"

[FloridaPat]

23. A lot of the toll roads going in now aren't making much money.

So what happenes when these private folks don't make the money? They'll have to charge an arm and a leg. This reeks of "screw the public".

[liberalcenter]

27. When they don't make $$

what happens? Do they fall apart? Abandoned?

[FloridaPat]

43. No, just light traffic. And for those that take them occasionally it's a

pleasure to get on a road with no traffic. Even if they are a tad expensive. Too expensive for the commuters but not once in awhile driving.

[Strawman]

28. This is outrageous

We can't afford to build public roads but we can afford all these wars? What the hell is going on here?

[bribri16]

29. Project for the New America! The agenda becomes even more clear

It's not just an international plan, it's domestic as well.
What will it take for Americans to oust the Republicans for good?

[BR_Parkway]

30. How many tolls did your tax cut equal? Screw you RePugs, there

is NO free lunch, you're going to pay back that tax cut with so much interest that even MBNA will be jealous that they can't gouge the same way!

[donkeyotay]

31. As someone here said, this is BEYOND FUBAR

A transportation system made up of a patchwork quilt of TAX SHELTERS??? Let me guess, they'll use public funds to build their tollbooths, won't maintain the roads, and then demand a bailout to fix them... sort of like what they've done with public utilities.

And there won't be any fraud or waste! Honest! It's clean, 100% pure free market ideology, so it automatically eliminates all fraud and waste!

Next it's water. After that, if they can swing it, they're going to privatize air.

[Ilsa]

32. Enter the era of the real road warrior.

People will be considering stealing one another's $5/gal. gas, racing through tolls, regular shootouts...

Is there a smiley for hyperbole?

[converted_democrat]

33. Why do I have a overwhelming feeling that we are sooo screwed?

This event in itself is not huge, but stacked along with everything else that we have been handed, this is awful. Can you get through the tolls without your shiny new REAL I.D.? Just curious.

[anotherdrew]

38. real ID, plus the RFID chip in your cars inspection sticker...

Tied directly into the databases of such things as insurance, etc. RFID readers at every major intersection. Get ready America, you've EARNED this... "You're travel papers please"... "oh these haven't been validated by your HomeSec office, you're going to jail..."

[KamaAina]

34. Welcome to the Richard Cheney Thruway, presented by Halliburton

Toll schedule:

Oil tankers: $.05
SUVs: $.10
Sports cars: $.25 ($.10 if driver is wearing a gold chain and a rug)
Sedans: $10
Compacts: $20
Public buses: $5,000

Enjoy your ride on the "Highway to Hell"! :evilgrin:

[anotherdrew]

36. well, now we know how they'll get the land to build these toll roads on...

this is yet another piece of stinking dog crap. revolution in US Now - or else we're all gonna be nothing but serfs, kiss yer freedom good-buy... it's gonna be too expensive to buy your freedom soon.

[SidDithers]

41. 407 ETR - We've got one across the northern edge of Toronto...

http://www.407etr.com/

Personally, I'm too cheap to use it, but I know people who swear by it. A significant issue is what recourse the 407 owners have in pursuing delinquent payers. They had been lobbying the Provincial Government to not allow Drivers' License renewals if the driver had an outstanding account with the 407 ETR company.

Sid

[Ezlivin]

42. Why not mass transit?

If the private companies want to do something constructive, why don't they start building bullet trains and other nifty mass-transit stuff?

Florida is nearly paved over and here in Texas it's road work 24/7.

[wookie294]

44. One day, sunlight will be privatized