goducks10 wrote:
It's called infrastructure spending. Politicians always run on spending money for it. However the money never seems to get appropriated for it. With the latest tax cut I highly doubt it will get done in the near future.
Income tax has never been a significant source of highway funds, so the tax cut is not related to this subject.
Yes, inflation adjusted spending has been going down over the last 10-15yrs.
- The vast majority of highway money comes from fuel taxes and in most states, it's been years since there has been a significant increase. When gas prices jumped from $1.50, you saw people cut back on driving and switch to more efficient cars. Since the gas tax is per gallon and not per dollar, that means fewer dollars coming in.
- Highway construction is very dependent on oil prices. It takes a lot of fuel to do construction work and the asphalt in asphalt concrete comes from oil...So costs to build have gone up dramatically.
- You also have costs rising due to new rules. One example: 15yrs ago, I would have told you a typical traffic signal modernization would cost about $75k. This year in the area I work it's closer to $250k. A big chunk of that is meeting ADA requirements but also other rules that have come online that increased costs significantly. You will find similar issues throughout the industry.
There isn't a good answer. It's politically difficult as opponents challenge new taxes and while it's really a small part of the problem there is enough real waste to let them make a politically viable case against raising the taxes...
...until it gets so bad enough that something must be done...problem is when it gets that bad, it will cost far more to fix than if you get ahead of the problem (greasing the bearings on your trailer axle is a lot cheaper and easier than replacing them)