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DANIEL GROSS | MONEY CULTURE

Gilded Highways

Why the government is spending $100 billion a year to get you to drive more.

By Daniel Gross | Newsweek Web Exclusive
Jul 31, 2008 | Updated: 11:36  a.m. ET Jul 31, 2008

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  • Posted By: Id-E-It-Nation @ 09/04/2008 8:14:10 PM

    Comment: Comment: I really ment the reason why the government want's us to drive more, is simple. The government is for big business. Oil companies and the auto industry are two of the bigest if not the bigest in the nation.
    Then thiers The Department of Moter Vehicles. I don't know what they call it in other states but this
    is where you pay registation fees. And then, thiers of coarse, the insureance companies. I know car insureance is the law in California. And then the rattle traps brake down oh! and you have to smoge
    the piss of crap!!! in California. All these government things and private bussinesses make a killing off these
    cars that you drive and the banks and dealer ships own and collect interest on them through the life span of
    the car.

  • Posted By: Id-E-It-Nation @ 09/04/2008 8:02:51 PM

    Comment: The reason why the government want's us to drive more, is simple. The government is for big
    business. Oil companies and the auto industry are two of the bigest if not the bigest in the nation.
    Then thiers The Department of Moter Vehicles. I don't know what they call it in other states but this
    is where you pay registation fees. And then, thiers of coarse, the insureance companies. I know car insureance is the law in California. And then the rattle traps brake down oh! and you have to smoke
    the piss of crap!!! in California. All these government and private bussinesses make a killing of these
    cars that you drive and the banks and dealer ships own and collect interest on through the life span of
    the car.

  • Posted By: jlmealer @ 08/03/2008 2:10:29 PM

    Comment: JOHN McCAIN???S 3R ECONOMIC PLAN 2008
    Abbreviated version
    Progressive thinking Republican Candidate John McCain comes through for America with his 3R economic plan. In the persona of Theodore Roosevelt, McCain???s plan just makes sense.
    FIRST , keep in mind that to drop the fuel tax, the local gov???ts would crash. We must use the 3R to replace taxes lost from replaced fuel through green energy (Yes, we have it ready to go!)
    www.betterconstructed.com
    1. RETHINK: America must see globally on what America is capable of in our current state of technology, engineering and meet the demands that face the world.
    Private Sector framework is in place and current laws allow the 3R to happen. The Progressive attitude of John McCain to get things done by crossing party lines will resurrect America.
    2. REFORM: The American people must demand higher quality products and less restricted trade routes for Made in USA components. We will lead the way of MFG again!
    The USA will reform its dead manufacturing base
    3. REINVENT: America and Americans must reinvent themselves to reach and maintain these standards and by sheer American ingenuity, control the world???s marketplace in the competitive manner, as the USA has always been proud to be #1.
    NUTS AND BOLTS of the plan are simple.
    Billions of savings equates to millions of lost tax revenue from energy companies. The US needs a separate tax revenue source before we can move away from fossil fuels.
    McCain 3R solution.
    McCain???s 3R is about technical, closely monitored and rapid hands on training from pros to create new pros. Thousands of currently-job-displaced ???once leaders in the manufacturing arena??? will be asked to train and play instructor rolls in the 3R plan. Paid, of course, as these new leaders will help create a whole new style of prosperous America. A massive restructure providing thousands New American MFG means millions of new jobs for infrastructure alone.
    We have the buildings, needs and infrastructure to do this!
    New jobs is the mainstay for Creating a new guard for Social Security.
    This is the new place for financial speculators to invest!
    McCain???s Progressive nature embodies Theodore Roosevelt more than any US presidential candidate in history since the original Rough Rider blazed the greatest era of growth in America.
    We need John McCain to lead our nation with the same type of change.
    Men and women of all races on equal ground operating their own businesses or taking part as an employee. No more hyphenated Americans! Thinking like Theodore Roosevelt all the way to a stronger America.
    www.betterconstructed.com
    THIS 3R DRAFT COURTESY OF:
    John Lewis Mealer, Founding President of Mealer Companies

  • Posted By: dmcooper314 @ 08/03/2008 1:43:03 PM

    Comment: FYI: I'm an urban dweller, and I don't drive a ridiculous, monstrous, reptilian brain ego-mobile, and yet I'm not a commie pinko. Could you stereotype a little more? Sheesh. Not sure if you're trying to establish your moderate creds or what, but I stopped reading after "Jeep-driving moderates like me"

  • Posted By: ltnelson @ 08/03/2008 12:36:00 PM

    Comment: I am always glad when there is a transit strike that I am not dependent on public transportation. If most people used public transit and the union decides they aren't getting paid enough, how are people going to get around? Do they have transit strikes in NY and other places with more reliance on public transport? I am in So. Cal. and it causes a considerable mess for a lot of people when the transit unions strike.

    I look at the bombings in Spain and London and wonder if in a world full of terrorism, dependency on mass transit is such a good idea. Southern California will not be slowed down by an attack on the public transit system. A well coordinated, widespread attack on an area dependent on public transit could lead to a major disruption.

    Still, I like to try to use public transport where it is available. I look forward to all the new electric bicycles coming out. Combined with public transport, you will really be able to get around in good weather, which we have here a lot, without needing a car. The bus or train can get you close to where you need to go, and the electric bike can zip you the remainder of the way without you having to be drenched with sweat when you arrive at your destination. And hills will no longer be a major problem. Public transport takes a lot longer than private cars to get places (except when it bypasses a traffic jam), so what is our time worth?

    Also, I run my won business and transport tools and materials. I don't see how public transportation would ever allow for this. Even in dense population environments, public transport can't do everything.

    The article is interesting in that it points out the tax money that is spent to allow cars to operate. How much less would people drive if they had to pay the true costs of driving out of their own pockets? Interesting concept. Since the goverment pays for and maintains roads, is it unreasonable for them to pay for and maintain rails?

    Back to the issue of unions, I read somewhere that a big issue in the costs of Amtrak are union controlled salaries. Again, unions are an issue with mass transit.

    The technology for efficient, clean, private transportation is coming. But you don't want to tank the economy trying to force the situation. Cheap solar is coming. Better batteries are coming. Electric cars will be clean and cost effective, giving most of the environmental benefits touted for mass transit with all the benefits of private vehicles. They will be quiet, too (except that much auto noise comes from tires, not engines) but traffic is going to continue to suck...

  • Posted By: Papito58 @ 08/03/2008 11:45:02 AM

    Comment: Sticking one???s head into the sand and continuing our wasteful expenditure of oil is irresponsible and devoid of all reasonable intelligent thought. There is a finite amount of oil, whether it runs out this year, next or in 200 years is irrelevant, the point is that it is finite, and if we do not find ways of conserving what we have while we await the promises of bountiful cheap alternative sources of energy, then perhaps not yourself, but quite possibly your great, great, grandchildren will be reverting to ox carts for transportation. I do not believe anyone posting here is advocating that we switch to 100% mass transit systems (as, unfortunately, some of the hard line ???give me my road??? posters seems to believe). There is a place for Mass Transit and there is a place for cars, they are not mutually exclusive, anyone that wants to pay $100 to fill up their tank to get from Point A to Point B, rather than pay, say $30, for Mass Transit, has the freedom to do so. It is ignorance to think that mass transit can be used in the midlands, where you have small population density, but then, are these the people that are responsible for the majority of our fuel use ? Of course not, it???s our metropolitan centers where you have hundreds of thousands of commuters traveling back and forth to work every day, using precious fuel. I???d suggest that some think tank can determine a reasonable population density figure that would support mass transit and plans should be implemented by the government to start building mass transit post haste in those identified sites. Considering that Iraq has already cost in excess of 600 Billion dollars, the same investment in Mass Transit would have been more productive in that it would have been a long term investment in our future. Side benefits of Mass Transit are reduced pollution, more bang for your buck due to the monthly cost saving of not having to fill your car at >$80 a pop (this is an ongoing saving, rather than the pitiful attempt by our current administration to boost the economy by a one time stimulus check). Mass transit would most certainly help the housing market by making suburban housing more attractive and would probably reduce the trade deficit (due to the high price of oil) which could potentially strengthen the US dollar.
    Rather than bemoan the loss of jobs (mom and pop Quick Lube stations, truckers, etc.) let???s focus on a sustainable future. I???d dare say that every great development in civilization has initially resulted in a loss of jobs (I???d propose that the development of machinery put many a man out of work) , but we carry on, it???s just a blip in the page of history.

  • Posted By: gab-in-texas @ 08/03/2008 4:09:48 AM

    Comment: Posted By: don'tbedumb @ 08/03/2008 02:08:47
    Comment: Those "mom-n-pop" businesses can bite my non-polluting bum! They kill the earth, as do you. I don't. Get it? We have an emergency and you can think of nothing better than citing the "open road"? God help us all for suffering fools like you.

    Hot dog!!! don'tbedumb is a ripping and a tearing.
    I see you may not have a car. To busy protesting to hold a job? While you're hugging that tree, reach over and give Mt Pinatubo a slap on the back. I recall it spewed about 10 times the CO in our atmoshere than mankind has ever produced. I,ve been enjoying those magenta sunsets for the past 17 years.
    Don't lose site of the issues. There is a place for mass transit, Alt. fuels and hybrid cars. It's not the total solution to the energy issues at this point in time.
    I remember a time in Texas, were a High Speed Rail between Dallas, Houston and San Antonio was proposed and started, never completed. This was to reduce travel conjestion between the cities. Just to show I don't completely opose you, I thought it was a pretty sharp idea. The notion here was that we still had the right to chose. The government was not taking away our cars and forcing us to use mass transit.

  • Posted By: JoeBlower @ 08/03/2008 12:20:08 AM

    Comment: What a bunch of morons. There is only one Mass Transit system in the US that can claim to generate enough revenue for ongoing operations - which does not include the cost of the original construction. All others are in the RED every single day of the year. And guess where the government gets most of its money to support Mass Transit - I'll give you a hint - GAS Taxes. Where in the world do you think your food comes from? Trying growing vegtables and chickens in Central Park and see how many mouths you feed. Roads will here as long as all of you are breathing. As far as the Gross Article I just read , I think he needs to change the water in his bong. Have a nice day.

    • Posted By: don'tbedumb @ 08/03/2008 2:06:23 AM

      Comment: Gas taxes don't pay for squat. Get your head on straight.

  • Posted By: gab-in-texas @ 08/03/2008 12:11:01 AM

    Comment: don'tbedumb, one hundred thousand plus parts with venders, mom & pop garages. tire shops, oil change, filling stations, etc. All looking for life, liberty, and the pursuit of happiness on this "open road".
    True, we are all responsible stewards of the planet, but this knee jerk reaction everyone is having , may do more harm than good.
    Now for government wanting us to drive more only shows that they know what grows the economy. It benefits all of us. I take exception to the addiction for imported oil. It only transfers "our" wealth to individuals who do not have our best interest in mind. (here & abroad)

    • Posted By: don'tbedumb @ 08/03/2008 2:08:47 AM

      Comment: Those "mom-n-pop" businesses can bite my non-polluting bum! They kill the earth, as do you. I don't. Get it? We have an emergency and you can think of nothing better than citing the "open road"? God help us all for suffering fools like you.

  • Posted By: eshemel @ 08/02/2008 11:10:34 PM

    Comment: To gab-in-texas: I see that the business that put you through college must have provided you with a pretty good job and salary for you to be able to afford the gas to enjoy the "open road". And you probably drive a Hummer. As a struggling college student, I applaud the cities and states daring to follow most of Europe's example to provide mass transit systems that are actually available and affordable to us "liberals".
    P.S. Where exactly are you suggesting the U.S. start domestic oil production?

  • Posted By: don'tbedumb @ 08/02/2008 10:14:18 PM

    Comment: gab-in-texas, I'm wondering what businesses outside of auto parts stores support "the auto owning public" exclusively. Honestly, does saving the planet or providing poor little you with "an open road" carry more weight? Hmm.\

    More domestic oil production would be disastrous for future generations and you selfish gits in Texas know it full well. And to any who actually think that granola-munching pedestrians and bicyclists don't pay for the roads, you're mistaken. They do in their local and federal taxes. Gas isn't the only thing taxed, you know.

  • Posted By: gab-in-texas @ 08/02/2008 9:29:09 PM

    Comment: Talk about stabbing in the back one of the economic engines that drive this country. To totally offset driving cars(as some subjest) with mass public transportation, you would damage the core businesses that support the auto owning public. In Small Town, USA where I live, that wouldn't be a hand full of businesses lost. It would be dozens upon dozens. By the way, one fed, clothed and put me thru college.
    As for this countries troubles, I do believe government and big oil have lost their way in taking care of the American peoples long term interest. For sake of tax revenues and hugh corporate profits, We were forced down the road of cheap foreign oil that would not last. And when it came to a head, the fix is a sharp swing to mass public transportation? Well I think that's a lil to late.
    As for the fix? America must return to domestic oil production which is what made us a great nation to start with. Push the oil and auto industries to develop alternatives for our future. Never let them forget. Apply mass public transportation where it would count the most. Out elected officials should be smart enough to figure this out. And give me an open road, for that is where I'm truely free.

  • Posted By: james Richardson @ 08/02/2008 8:07:25 PM

    Comment: I hope you all remember these are not free roads they are paid for with your tax dollars. The government does not want alternative form of transportation on the roads because they haven't figured out how to tax them. So when you drive an electric car on the roads you are subsidised by the people you use oil burners. Remember this the government only can give what it takes from some one else. It is a parisite on the hard working americans.

  • Posted By: The Original Mac @ 08/02/2008 7:21:26 PM

    Comment: "A car in every garage" Thats what the saying was back when cars started being pushed on our grandparents and great grandparents.. Just like cell phones and video games are pushed on us today.
    People, if you don't NEED a car, don't buy one! There I said it. As a nation we were led off track years ago by a bunch of business men who wanted to get rich. And oh boy did they.
    Well enough is enough. Its time we got back to getting around the way that best preserves our resources, or nation, and our world.
    Just think, the feds will be out of the transportation business. HAPPY DAYS! No more of this crap from Washington.."Well if you want $20,000,000 for your highways your gonna have to adjust your driving laws to the way WE want them". "Not that wer'e telling you how to run your state or anything."
    Boy, I'm getting more excited the more I type! Hey lets bring back trollys! You know, those little trains like they got in San Francisco? The ones that don't use ANY gas? YEA THOSE! And we could walk our fat asses to Mcdonalds. OOPS! getting off the subject. WEll we could do more walking and become more healthy as a nation. This in turn would help lesson our health care cost. MY GOD! the potentials are endless!
    I think we should use Manhatten, NY, NY as a testing ground to a large metropolis where no cars are allowed. Other then fire, police, delivery ect .. nothing else. No private cars. Just public transportation and thats it. Think how quiet it would be. I'm pumped!

  • Posted By: jpooch00 @ 08/02/2008 5:29:32 PM

    Comment: Well, if the government wants me to drive more, I'll make sure to drive as little as possible! That's the best reason I've heard yet to cut back!

  • Posted By: techresmgt @ 08/02/2008 9:49:09 AM

    Comment: If the government would get off their collective butts and stop pandering to the oil companies and come up with a cohesive alternative energy plan, maybe we could make progress. The idea of government not doing their duty to the citizens that vote them into office and pay their wages is due for a profound overhaul. We have HAD it.

  • Posted By: GregHere @ 08/02/2008 7:13:55 AM

    Comment: ..................................................Why is Gasoline Conservation constantly not talked about everywhere when the price of gas comes up???? Look around and see the wasteful types of vehicles that Americans using on the on the road......look at how Americans are driving the vehicles that they own....lots of speeding above the speed limits....lots of "lead foot driving" with speed bursts to pass other drivers to show "who is boss". Drivers make those Drag Strip Starts from traffic lights to get an ego charge and show off for others.
    The American Automobile Manufacturers and Oil Companies have been seducing us into buying the highway toys they sell and make big money on for 60 years or more.......they want us to live it up and burn more petroleum and have our thrills on the roads with their products.....fun, fun, fun. Unfortunately this folly can not last and we are going to go bone dry with our petroleum in the future unless other options are found.
    The thing to do now is to accept a more moderate lifestyle in relation to our vehicles NOW!!!!! We can change quickly and see a difference made if we lower the speed limits on the roads and highways and choose vehicles that offer much improved gas mileage. Too many Americans are selfishly wanting to get their thrills on the roads instead of enjoying all of the good things of life in other ways......make a choice that will work!!!!

  • Posted By: GaltKnows @ 08/01/2008 7:58:53 PM

    Comment: Can't read your name but the person that says an oilman is running the country is right. We need to get off our addiction to foreign oil. I'm tired of watching everyone else get rich off of us while we now struggle to pay our bills and these gas prices. Don't get seduced by the sudden lowering of gas prices. Don't forget not that long ago $3 a gallon was a lot of money for gas. The best solution to this energy crisis and getting off of oil is gasification although the media does not like to cover it. Why I don't know. It's not some expensive technology like they say but a gasifier can be made in one weekend out of recycled parts. You gotta check out the social network on gasification www.VictoryGasworks.com.
    ..

  • Posted By: nmbrldy69 @ 08/01/2008 4:44:00 PM

    Comment: You really want to know why the government wants you to drive more? It's because an oilman is running the country, with so many facades in place to guard his investments that no one could possibly track them down. Give it to him - he had to "represent" for the oil industry, and he has - in spades. Go to alternative energy sources - solar, wind, etc. It's possible, because it's being used now, in different parts of the world. This time, America's bringing up the rear on the technology and energy fronts, instead of leading the way.

  • Posted By: Jill from Florida @ 08/01/2008 3:30:39 PM

    Comment: 5 Democrats (moderate) and 5 Republicans (moderate) have come together to discuss our current energy crisis. They have come up with ERA of 2008. ENERGY REFORM ACT of 2008. Under the leadership of Senator Conrad (D-ND) and Senator Chambliss (R-GA), today, they submitted a bill that is fully paid and offers a BALANCE of Finding More US oil, Funding alternative energy, and conserving energy. It will open up the southern eastern offshore - but NOT around FL nuclear weapons testing area and NOT WITHIN 50 miles of FLORIDA COAST. It will be funded by levying ROYALTIES on all offshore drilling. (Not just minor lease payments)

    This is the only WIN-WIN solution offered on the Senate floor in the past 1 1/2 years.

    Please contact your Senators to support the ENERGY REFORM ACT OF 2008, by Senator Kent Conrad (D-ND), Senator Saxby Chambliss (R-Ga.), John Thune (R-S.D.), Lindsey Graham (R-S.C.), Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.), Johnny Isakson (R-Ga), Bob Corker (R-Tenn.), Mark Pryor (D-Ark.), and Ben Nelson (D-Neb.).

  • Posted By: Jill from Florida @ 08/01/2008 12:30:56 PM

    Comment: Skallywag:
    I agree with you entirely. At least 60% of both party officials are either extremists or corrupt. There are at least 31 Democratic Senators and 30 Republican Senators who are either out-and-out corrupt, extremists or just working for special interests and lobbyists. Both sides spew propaganda and the population eats it up.

    It's time we use our common sense and start reading between the lines. As long as we have only 2 major parties, life in the USA will NOT get any better. It's time for third parties who are FOR the people emerge. Defeat the party leaders on both sides. Defeat most of the chairman and ranking members of the various committees. Defeat those who refuse to work across the aisle when it comes to issues that directly relate to the people of this country. Defeat those who do not allow discussions and amendments of major bills.

    Enough of the tactics of Bush and the extremist Democrats who only believe "IT'S MY WAY OR THE HIGHWAY". Vote out or impeach the whole batch.

  • Posted By: Young Hickory @ 08/01/2008 11:29:33 AM

    Comment: I have a news flash for those people who believe we live in a free market. We have a capitalist society but that is different from a free market. Free market is freedom from government interference but the fact of the matter is that our government picks winners and losers all the time. The government allows banks to make risky loans and keep any profit while charging the taxpayers for any losses. So for all those who have some kind of fantasy that you got where you are in life because of hard work and because you are sooo good. You better humble yourself before your Creator and thank him for giving you benevolent parents or other benefactors such as the government. We have a fossil fuel based economy because that is what the oligarchs and government have chosen for us. It will change only when they decide that changing the rules benefits them.

    • Posted By: Skallywag @ 08/01/2008 11:57:37 AM

      Comment: I slightly disagree with your last sentence. It will change when the voters decide that we have had enough and change who those who represent us in government. We have in this country a sanctioned, legal method of "revolution" so to speak - it's called an election. If we don't like the way our country is being run, then vote for something better. Now for the part I agree with - it won't change. The vast majority of voters are lemmings, blindly follwing one political party or another to their doom. Theyt will ignorantly vote for one candidate only because they are told the other candidate is bad, not because they really belive that their candidate is good.. Top it all off with the government (both parties) likes it this way. So they do everything possible to keep the voters uneducated, misinformed, lied to and in general at odds with each other and confused so they can't figure this out for themselves. God forbid we should figure out that our government only has their own best interests in mind and not ours - they might get removed from office (but only if we can stop arguing about how bad the other guy is).

      • Posted By: olderwiser @ 08/01/2008 7:53:56 PM

        Comment: We will likely vote this November on the issue of whether a candidate who is as popular as Britney Spears could be fit to be a president. The ghost of Karl Rove has invaded the Mc Cain campaign. They know the quality of political thinking among a large percentage of our voters and just can't resist the opportunity to appeal to them. To these voters, gasoline is the fuel that burns in the limousine that takes Britney to her court appearances. It's going to be an ugly October.

  • Posted By: Jill from Florida @ 08/01/2008 10:02:01 AM

    Comment: Obama's solution for the high gas prices, "Go to Jiffy Lube."

  • Posted By: Jill from Florida @ 08/01/2008 10:01:05 AM

    Comment: The extremist Democrats in Congress have a new plan to help with the high gas prices. They will initiate new regulation on the tire manufacturers to boldly put PSI on all tires (regardless of the vehicle that you drive) and Congress will give all residents in the US a free tire gauge.

  • Posted By: Jill from Florida @ 08/01/2008 9:30:09 AM

    Comment: What's the extremist Democratic solution for the higher gas prices causing less money in the highway fund coffers? They are going to propose an ADDITIONAL $0.10/gallon federal tax increase. Logical thinking, right?

  • Posted By: Skallywag @ 08/01/2008 9:03:24 AM

    Comment: ARTICLE IN NEWSWEEK JUST THIS LAST WEEK:
    Transportation secretary proposes new funding plan
    Transportation secretary proposes new approach for funding, maintaining interstate highways

    ONE COMMENT GIVEN:
    Not one mention of re-thinking the transportation problem at all. More talk about more highways (read more places to drive cars to use gas to line the pockets of the oil moguls). No talk about interstate passenger rail systems, intrastate or intra-city rail systems. Aside from the fact that we needed them years ago (we had them, but oil and auto interests pushed the individual transportation system, letting mass transit fall into ruin), they will help alleviate traffic congestion and pollution (thus helping the environment on a global scale) rails, trolley, subway and mass transit systems will not line the pockets of the oil interests (and the Bush administration's). So here is the Bush administration, saying that we as a population don't drive enough, we need to build more roads to get you to drive more.

    Exxon reports record profits for Q2 - earned at a rate of $1500 per second. The general perception is that the Bush administration mat not have started it, but they sure are keeping it going, and are doing nothing responsible to stop it.

    What happens when there is not oil left? The roads fall into disrepair becaus they can't use gas tax money to fix or build them.. Then, they are scrambling to figure out where to get the money to build mass transit that should have been started and already in place. Mass trasnti isn't socialist, its responsible.

  • Posted By: ced1106 @ 08/01/2008 1:21:34 AM

    Comment: Waaah. Waaah. Let's all blame Bush. Well, Bush wasn't around when the (presumably liberal) San Francisco Bay Area counties pulled a NIMBY and didn't allow BART to pass through various Silicon Valley counties. Before you blame "the government" for you mass transit (and other) troubles, look at your local NIMBY government.

  • Posted By: letsworksmarternotharder @ 07/31/2008 10:10:50 PM

    Comment: When is this country going to take a serious look at a high-speed monorail system, on the front side would be a definite boost to economy while being constructed, and if properly utilized will get us on the road towards energy independence, no it will not entirely replace cars, trucks or airplanes, but will surely make a dent. We have railroads you say ?????? That is 19th century technology and is for moving freight, quite efficiently I might add, we need something better than Amtrak for moving people quickly, safely and comfortably that is highly efficient, and the possibilities for additional light freight utilization would also be a bonus.

  • Posted By: idonow @ 07/31/2008 9:57:13 PM

    Comment: cool no resonsibility on my part the government made me do it

  • Posted By: kilgoretrout @ 07/31/2008 8:14:10 PM

    Comment: Who pays for this "Subsidy?" If I'm not mistaken, me as a taxpayer does. Which means I am PAYING for the use of the road. Now the fact that government is inept and can not handle the roads efficiantly is not part of the discussion. The point is its not a subsidy it is the price that I pay to drive on the ROADS!!

  • Posted By: ogobeone @ 07/31/2008 7:40:08 PM

    Comment: I guess I would like to add that it would be nice if we had the opportunity to edit our own comments, since I see two typos in my comment below!

  • Posted By: ogobeone @ 07/31/2008 7:35:35 PM

    Comment: The US tax code is meant to tax a company's (whether corporation or sole proprietorship) profit, not its revenue. DANIEL GROSS's arguement that a business's ability to write off its costs, in the case of a vehicle, is a subsidy. Who is to say what type of vehicle is a work vehicle, such as a truck or van, and which is a non-work type vehicle, like an SUV? And furthermore, why are only vehicle costs considered subsidies, when a company can "write off" all other costs, since the tax code seeks only to tax its net income?

    If the IRS and Congress decided that it was from now one going to tax revenues, and that all company costs were to be considered ineligible for write-offs, you could easily see situations where high-margin businesses were being "subsidized" at the expense of low margin businesses. A high margin business, such as a real estate company, has few costs, whereas a low margin business, such as a super market, has many. Each may make the same profit, but the real estate company will be able to pay its tax bill much more easily, since it's revenue is much lower.

  • Posted By: benjol999 @ 07/31/2008 7:22:16 PM

    Comment: The train system in US is like in third world. I experienced train in Japan (Tokyo-Osaka), and in France and Germany, their train system is so fast and smooth (probably 3 times faster than Amtrak). Also you barely feel the movement. With Amtrak, you feel like youre travelling in Philippines or Thailand. The whole car shakes all the time. Not to mention its moving at a glacial speed (and they call it, Acella EXPRESS).

  • Posted By: notroubleatall1963 @ 07/31/2008 6:50:20 PM

    Comment: We should all be funding expanded public transport and high speed trains, etc.

    Petroleum (gas) will be depleting faster and faster in about a decade and we'll all be stuck with cars, buses and trucks (OH, and airplanes) to get around. They all require gas/petroleum-based fuel.

    We need to model ourselves more after Europe and stop deriding them for being backward. WE are the backward ones now.

  • Posted By: hcskevin @ 07/31/2008 5:21:49 PM

    Comment: What a inanely shallow article. It belongs on an opinion page because of its clearly obvious agenda. The entire discussion of tax breaks is a distraction. The fact is, USA is the most powerful, efficient, economic engine on the planet. Why? We have incredibly flexible, cheap, and efficient transportation. All those "subsidies" turn out to be a stunningly successful investment in the future (and future taxe revenue) of our country

    • Posted By: notroubleatall1963 @ 07/31/2008 6:52:23 PM

      Comment: Spoken like a TRUE Reactionary. Get your head out of the sand.

      Oil is never going to be "cheap" again. We're headed for a global shortage in about a decade. That shortage will make it uneconomical to continue subsidizing cars and highways. We need high speed trains that run on electric power (preferably nuclear or something clean)...

  • Posted By: hcskevin @ 07/31/2008 5:21:03 PM

    Comment: What a inanely shallow article. It belongs on an opinion page because of its clearly obvious agenda. The entire discussion of tax breaks is a distraction. The fact is, USA is the most powerful, efficient, economic engine on the planet. Why? We have incredibly flexible, cheap, and efficient transportation. All those "subsidies" turn out to be a stunningly successful investment in the future (and future taxe revenue) of our country

  • Posted By: cooned @ 07/31/2008 5:07:49 PM

    Comment: Comment: The article conveniently leaves out a few numbers. According to the Bureau of Transportation Statistics, the U.S. used 174,930,000,000gals of gasoline last year. According to GasPriceWatch.com, the federal tax on each gallon is $0.184, and that equates to about $32,187,120,000.00 (thats $32 Billion+) we pay for these "subsidized" roads. This does NOT include state and local taxes. The article also does NOT include the taxes paid via property taxes and SPLOST (Special Purpose Local Option Sales Tax) that are then used to create, upgrade, and maintain the roads in cities and counties. I suspect I'm paying more in road taxes than I ever see in "subsidized" road support every year. At least take an hour to write something a little more balanced than this, please.
    ++++++++++++
    ...you left out the tolls, which are quite substantial if you live in Mass anywhere besides Boston.

  • Posted By: cooned @ 07/31/2008 5:06:06 PM

    Comment: the "tax credits for hybrids" are overstated. The govt. only gives a credit for the first 60,000 of a model sold, which has already been far surpassed by the most popular models of hybrids. I bough a Prius last year and got nothing for a tax credit. It seems to me that the government is doing more to encourage the sale of gasoline than driving itself. also self-employed individuals such as myself should get some rebates, between fed taxes, Mass state tax, and self employment tax I pay close to 50% of my income in taxes. On top of this I pay 5% sales tax on everything I buy, a "gas tax" every time I fill up, excise tax on my car, tolls when I drive on the highway, and now I am being forced to buy health insurance along with auto insurance by the state of Massachusetts!!

  • Posted By: twinsbaseball5 @ 07/31/2008 4:54:01 PM

    Comment: We will always need money to be spent on roads no matter how much mass transit there is. There is no city in Europe or anywhere else that has elimintated the need for roads through mass transit. Most mass transit attempts have been unprofitable, Amtrak being a great example. The seventy five billion spent on roads is a necessary expense to keep our nation running and there is no possibility that more mass transit would create a significant decrease in spending.

  • Posted By: Paulthomas @ 07/31/2008 4:53:43 PM

    Comment: You don't do research very well. But I suppose all you needed to do was just enough to make the story sound good.
    Depreciation of business assets are covered under Code Section 167. Section 179 is the accelerated expensing that is optional and instead of regular depreciation.
    A self-employed peson takes deductions against their self-employment income, and as such, those expenses not only reduce regular income tax, but self-employment tax. In your example, the total tax savings for both the income tax AND the self employment tax would be 48.3% or about $1400.
    Don't be in such a rush to get a story out that misrepresents the facts.

  • Posted By: crx1 @ 07/31/2008 4:47:02 PM

    Comment: Author is a typical liberal. All for the "market" i.e. toll roads etc. to jack up the cost of driving forcing people off the land into the cities onto mass transit where big brother can keep an eye on everyone more easily.

  • Posted By: dfingles @ 07/31/2008 4:32:18 PM

    Comment: The article conveniently leaves out a few numbers. According to the Bureau of Transportation Statistics, the U.S. used 174,930,000,000gals of gasoline last year. According to GasPriceWatch.com, the federal tax on each gallon is $0.184, and that equates to about $32,187,120,000.00 (thats $32 Billion+) we pay for these "subsidized" roads. This does NOT include state and local taxes. The article also does NOT include the taxes paid via property taxes and SPLOST (Special Purpose Local Option Sales Tax) that are then used to create, upgrade, and maintain the roads in cities and counties. I suspect I'm paying more in road taxes than I ever see in "subsidized" road support every year. At least take an hour to write something a little more balanced than this, please.

    • Posted By: ltnelson @ 08/03/2008 12:48:07 PM

      Comment: I think the point is that if gas taxes alone do not cover the cost of roads, why is it a problem for some of the state and local takes, property taxes and sales taxes that you mention to go towards public transportation? There are people who don't own cars who still pay all those other taxes. Why do they have to subsidize your driving?

  • Posted By: LouIsland @ 07/31/2008 4:22:23 PM

    Comment: This gentleman should calculate how much the drivers of New York subsidize mass transit with tunnel and bridge tolls that go to mass transit. And just because the government builds roads that does not mean they are free. They are financed by highway and gasoline taxes as well as the income taxes of drivers.
    It's the mass transit rider that pays only a fraction of the cost of the trip because of government subsidies.

  • Posted By: jsc08 @ 07/31/2008 4:08:45 PM

    Comment: What does Gross mean that we have "free roads" to use? Who is this mythical "government" that is subsidizing the great roads of this country? His writing offends me. If I buy gas that has a tax and that tax money is used to build roads that I can drive on, then the roads are not free and my driving is not subsidized. I hate spin doctors.

    • Posted By: ltnelson @ 08/03/2008 12:43:53 PM

      Comment: Does the gas tax pay for all the mainenance of roads? I don't know the answer, but I doubt it. The point is: why make a stink about subsidies to public transport if private vehicles are also subsidized?

  • Posted By: newage_lightbulb @ 07/31/2008 3:20:54 PM

    Comment: Smelter is a noun. Stop ranting and read a dictionary.

    • Posted By: ltnelson @ 08/03/2008 12:40:41 PM

      Comment: "Stop ranting and read a dictionary" is a run-on sentence. Maybe you should learn grammar before you start making smart ass comments!!!!

    • Posted By: olderwiser @ 07/31/2008 4:49:08 PM

      Comment: Thanks, newage, for giving me the opportunity to share some thinking about the use I made of the word "smelter". The word "smelt" actually is the verb that could be used to describe the process that I described with the noun "smelter". However, I am also aware that the word "smelt" is the name of a fish and also one of the past tenses of the word "smelled". I flipped a coin or two and decided that since most people know what a smelter does, melt metal, and since I was in the process of actually melting the iron from the irony of our plight anyway, which really doesn't melt at all, I said, "what the hell", we'll just smelter the irony. I have to say that I "smelt" your objection, though and it was just a tad malodorous. Forgive me if I offended your finer sense of word usage, as I never intended to do so.

      • Posted By: olderwiser @ 07/31/2008 4:58:53 PM

        Comment: And besides that, I think that I "railed" more than "ranted". But, I'll concede rant if you insist.

        • Posted By: olderwiser @ 07/31/2008 5:12:14 PM

          Comment: Wait, newage, I can blame this on an old man I knew in my youth who simply refused to use the word 'inherit" and constantly was occupied with the possessions of others and how they had not earned theirs as he had, but had "heired" their undeserved fortunes. I now owe you for this warm memory from times long past.

  • Posted By: woohoo @ 07/31/2008 3:12:05 PM

    Comment: olderwiser, you must be a writer.
    anyway, people started driving less this year because we citizens feel the pain before the big wigs ever know there's even a problem. Most major cities and even smaller cities nowadays, need a healthy mass transit system. doesn't gov't see that mass transit at least provides more jobs in some areas, cuts down auto accidents, lowers insurance, limits pollution (all the things that they and their spindle of control the media preach about)? these people are probably in bed with the gas companies, that's why they oppose it. i swear the wrong people are in power. the system needs an entirely new way of operating (and i'm not talking about obama). you can't just change the head if the whole body is rotten.
    "Americans can drive so much because there is an extremely extensive system of (largely free) roads for us to use. Despite some private-sector efforts, maintaining and building the nation's roads remains almost exclusively the preserve of government". our tax dollars pay for these roads. gov't money comes from us not some imaginary piggy bank in the sky. and if money wasn't wasted on roads- repaving a stretch of highway 3 times in 10 years- we'd have some extra money for mass transit.and aren't highways also funded by tolls?
    one more thing:
    urban dwelling socialists? jeep driving moderates? people don't take mass transit because they want to, they take it because they have to. can you at least pretend to be objectional.

    • Posted By: olderwiser @ 07/31/2008 4:54:57 PM

      Comment: Hello woohoo. Not a writer. Just an old retired man with a computer and the miracle of the internet. It is perhaps the greatest invention of the 20th century.
      The cheap fuel has allowed us to live far apart from each other so that we needed to drive to get there. As the price stays up or rises, then we will move close enough together to make the public transport work. So far, it takes too many miles of rail per person to justify the cost in most of the country. Probably something that simple. But, we will flail for a while trying to do the impossible first and then move close enough together to have public transport. Good fortune to you.

    • Posted By: Saltydog_0 @ 07/31/2008 4:21:02 PM

      Comment: "our tax dollars pay for these roads. gov't money comes from us not some imaginary piggy bank in the sky"

      Government money comes partly from us taxpayers. The rest comes from China. China's either going to spend the next couple hundred years living off our interest payments or they're going to cut off our supply and watch us self-destruct. They've won a war we never knew was taking place because we were too busy staring at shiny objects.

      Each American's portion of the debt is $175,000 and growing. Our government is handling the situation like they always have; borrow more to pay the debt. It's only a matter of time before the system breaks down. If we don't choose to tackle the problem, pretty soon the problem will tackle us.

  • Posted By: perpetualtruth @ 07/31/2008 2:32:20 PM

    Comment: Olderwiser! I actually read your comment before seeing the author and had a feeling it was you. Anyway, well said. As a young person in this country watching the ship go down, it's very difficult not to despair. You didn't help me much, but you definitely did capture the sentiment.

    • Posted By: olderwiser @ 07/31/2008 4:39:05 PM

      Comment: Thanks perpetual. I may have railed a little, but being in my last few years, I bemoan that younger folks will not have the great opportunities that I had in more sensible fiscal times, and it saddens me that much of your time will be spent in figuratively bailing out the lifeboat to keep it from sinking instead of multiplying your efforts with a reasonable profit in a sound economy. Good fortune to you and please do not let the railings of an old man lead you into despair.

  • Posted By: olderwiser @ 07/31/2008 2:06:46 PM

    Comment: The irony of this is so strong that you could smelter it into steel. The former conservative party is the party of waste beyond the imagination of the former party of waste and over taxation. The Reagan family checkbook example of fiscal conservatism is dead. The party of fiscal conservatism now fosters the idea of borrowing and spending far beyond our means all the while cutting the taxes which could at least fund the profligacy. The former party of conservatism writes hot checks which cannot be repaid until the 22nd century while running on a continuing ticket of fiscal conservatism al the while accusing the former party of fiscal waste and causing us to go broke with their plan of at least taxing enough to balance the budget. Are we mad? Blind? So stupid that they can stay in power and lead us into total and irrecoverable ruin? Tune in to find out in November. If the wrong ones win, we will throw a big champagne party while the last lifeboat sinks into the ocean of debt and then declare bankruptcy against the claim of the liquor store for the champagne that we bought on credit to celebrate our demise.

 
 
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