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U.S. NEWS Monday 8 May 2017

Crumbling roads and bridges bring higher taxes and fees

By DAVID A. LIEB ring private investment in
Associated Press infrastructure. That could
For the first time in nearly 30 include tax incentives for
years, Tennessee will soon those who subsidize big-
tax motorists more to fill ticket projects, with an ex-
their tanks. So will Califor- pectation that investors
nia, Indiana and Montana. could recoup costs through
Lawmakers across the U.S. tolls or fares on roads,
have approved new pro- bridges, rail systems or air-
posals this year to pay for ports. Tennessee currently
transportation improve- uses neither tolls nor bonds
ments, including tax hikes, for its highway system.
vehicle fee increases and At least two dozen states
bond packages. Those adopted higher fuel or
measures extended an sales taxes to pay for trans-
existing trend to a new portation improvements.
milestone: Two-thirds of all “That’s highly unusual for
states have stepped up that many states to be in
highway funding over the agreement about raising
past five years. taxes, and these are of-
It’s happening in both Dem- tentimes fairly conservative
ocratic- and Republican- states as well,” said Carl
led states as their transpor- Davis, research director at
tation departments strain to the Institute on Taxation Crews look over a tractor trailer and a San Bernardino County Fire Department fire engine that
overcome backlogs deep- and Economic Policy, a fell from southbound Interstate 15 where part of the freeway collapsed due to heavy rain in the
ened by the last recession. Washington-based non- Cajon Pass, Calif. A state $5 billion annual plan raises fuel taxes and vehicle fees to pay for
repairs to state and local roads, while also providing money for public transit and biking and
And lawmakers are acting profit think tank. walking trails.
regardless of promises from The U.S. has an $836 billion (David Pardo/The Daily Press via AP)
President Donald Trump for backlog of needed repairs
a $1 trillion national infra- and improvements to roads project that will merely hold $5 billion in federal funding problem.”
structure program that his and bridges, plus an ad- funding flat when account- for infrastructure. The federal gasoline tax
administration has yet to ditional $90 billion backlog ing for inflation. States are South Carolina House Ma- has remained at 18.3 cents
detail. for public transit systems, “bellying up to the bar and jority Leader Gary Simrill a gallon since 1993, break-
Some state officials doubt according to the Federal actually increasing their said the federal money ing a record this spring for
that Trump’s plan will make Highway Administration. own gas taxes to make up would be welcome but its longest gap between
much of a difference when Those needs have grown as for the lack of an increase doesn’t provide a long- increases. The last record
it comes to repairing and the money available from of federal spending,” said term solution. The state’s was set when the tax re-
replacing thousands of old the Federal Highway Trust Julius Vizner, an assistant Department of Transporta- mained at 4 cents from Oc-
bridges or repaving and Fund for states fell by more vice president at Moody’s tion wants an additional tober 1959 through March
widening countless miles of than 9 percent from 2010 Investors Service. $1.1 billion annually over 1983.
congested roads. to 2015, according to an Republican-led South the next 25 years to im- Trump recently said he
“We really don’t know Associated Press analysis Carolina, which has long prove roads. could consider higher fuel
what’s in it. We haven’t of the most recent figures resisted tax increases, is “People who are waiting taxes as part of his infra-
seen anything,” said Ten- from the highway adminis- among those seriously con- on the federal govern- structure plan, although
nessee state Rep. Eddie tration. sidering a gas tax hike this ment usually just get old that could meet resistance
Smith, a Republican from A 2015 federal law increases year. Separate tax propos- and tired,” said Simrill, a from fellow Republicans in
Knoxville. But “it sounded Highway Trust Fund money als have passed the House Republican who has led Congress.
like there wasn’t going to for states by $20 billion over and Senate, even though the House’s road-funding Only about a dozen states
be a lot that we would di- five years through tradi- Republican Gov. Henry efforts for several years. have gone longer than the
rectly benefit from.” tional matching funds and McMaster has threatened “South Carolina cannot federal government with-
Trump has said his plan new competitive grants. a veto and wrote a letter to wait on the federal govern- out raising their motor fuel
will depend partly on spur- But some financial analysts Trump in February asking for ment to take care of our taxes.q