DANIEL GROSS | MONEY CULTURE

Gilded Highways

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

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  • Posted By: fsilber @ 06/09/2009 1:52:09 PM

    What do Amtrak, Atlanta's MARTA, and Houston's bus system have in common? All tried to forbid people with concealed carry permits from wearing their handguns while using mass transport services. As far as I know, Amtrak still forbids it. That's why I refuse to support public transportation.

  • Posted By: robermayer @ 06/02/2009 11:22:13 PM

    I cant understand why American Car Engineers can come up with a Hybrid that uses Hydrogen to suppliment the gas engine. Once the car gets running on regular gas, switch on the Hydrogen seperater and create your own Hydrogen gas from water. NO POLLUTION !!! Go see it on Utube. People all over the world have came up with ways to make it work. The two main problems are filtering the Hydrogen gas once it is removed from the water, then adjusting the air flow sensors that control the gas engine to let it know the hydrogen is being introduced and ajust gasoline as needed. THE HARDEST PART WILL BE KEEPING THE OIL COMPANIES FROM BUYING THE TECHNOLOGY AND DESTROYING IT BEFORE IT GETS TO MARKET.

  • Posted By: rho1953 @ 06/02/2009 7:15:34 PM

    Is this the same government that tells us we're destroying the planet? They'll find a way to get their revenue back. Global warming is the justification for a government that controls everything, but they can't make it work unless we give them permission first. It is time to take this country back from the lunatics.

  • Posted By: rho1953 @ 05/22/2009 6:16:15 PM

    Yeah this is the Catch 22 of the whole mess. They tell us our cars and oil are destroying the planet. That's the excuse for massive new taxes that go on forever. So we cut our driving and guess what? They start whining about the lost revenue. So they raise taxes to compensate for the lost revenue. All paths lead to the same destination. More, more, more. They just want more, all the time. It's time to get serious and take our country back.

  • Posted By: cmarsh @ 05/20/2009 11:41:48 PM

    Yeah, use taxes (sales tax on Internet and mail order and out of state purchases) is really on the honor system. But it's what Robert E. Lee would have done, I guess, and I've been in northern Virginia 6.5 years. It's not like the state does nothing for us. It ought to be coordinated across the 50 states and DC so it can be collectable.



  • Posted By: CouldCareLessAnymore @ 02/07/2009 9:30:38 AM

    This is all about tax revenue, actually lack of tax revenue. The two largest ways the Fed gov makes money is from gas and income tax revenue. On the state/local level it is made from sales/gas/state income/ property tax, all of which are down dramatically and rapidly falling. Many governments will be talking bankruptcy within 2 years as this is the first year they will be sucking wind, lol. How are they going to pay for all the stimulus packages and bailouts when they don`t generate the income they expect? They are doing the same thing that consumers did, spending way beyond their means with no way to pay back the debt.

    Another huge problem that goes relatively unnoticed are pensions. We are paying for millions of retirements out of our pocket. Most every product you purchase has a built in pension cost including every tax dollar. Our government gave these companies incentives to do this so social security wouldn`t have to foot their bill. As pension costs go up so do the products/taxes. These people do not deserve a free ride out of our pockets. It`s disgusting...

    Sure they want us to drive which leads to going somewhere to spend even more money, lol. No thanks, I`ll stay home and continue putting money under the mattress. This will be my second year of zero income tax paid, owning a small business means I can hide 10`s of thousands of dollars from the tax man in various ways. In fact I`ll make money again by getting the rest of our stimulus rebate check, lol. I also try to buy everything possible online to avoid paying state tax though they are going to change that soon.

    This new stimulus is the last hurrah for the stock market. If you haven`t gotten out you should consider this comming week to be your last chance. After that it`s downhill for the rest of the year and possibly next year too. At the end of this year it will be approaching 6,000 and unemployment will be near 12%... I`ll continue to do everything I can not to support this system that is leading to the greatest depression!

  • Posted By: k.oc @ 02/04/2009 9:21:04 PM

    Driving 5,000 miles isn't free. There's not tax savings because there is no income from driving. That's a cost. Basic tax accounting.
    Thanks for the insight. I can't wait for part 2 - Government Spending Trillions to Tax You Only On Income, Not Revenue. Buy widgets for $10, sell for $11, pay tax on $1 profit - big fat government subsidy on that $10 inventory cost. I guess Mr. Gross thinks in that case the tax should be $3.63 (33% of $11) and not $0.33 (33% of $1).
    Brilliant last paragraph there.

  • Posted By: tvjames @ 01/19/2009 12:15:11 AM

    Hey Cricketman - you mean to say "you're" and not "your" - maybe you should learn to spell yourself before harassing others.

  • Posted By: Too late smart @ 01/16/2009 4:30:49 PM

    The tax credits for buying big SUV's and the tax credits for off shoring jobs wer supposed to bring us everlasting prosperity. They did not. They should be repealed ASAP. That will take a lot of grass roots action for that to happen.

  • Posted By: cricketman @ 12/05/2008 9:49:57 AM

    Hey, ID-E-It-Nation
    Learn to spell and get off this post. Your comments are inane. P.S. You'll probably have to look that word up in the dictionary. Bet your glad I spelled it correctly.

  • Posted By: cowboyb1965 @ 10/27/2008 6:03:48 PM

    the lower the price of fuel the more gallons we buy fuel is taxed by the gallon it now costs $60.+ to fill up when i could buy 17 gallons for $19. 3 tanks a month versus one therefore the government loses taxes in the other two tanks 19x2=48 gal and 19cents a gallon adds up per household its easy i buy less fuel they get less taxes the more fuel goes up the less i buy

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

    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

    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

    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

    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: dfingles @ 07/31/2008 4:32:18 PM

    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

      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: jsc08 @ 07/31/2008 4:08:45 PM

    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

      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

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

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

      "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

      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

        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

          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: ltnelson @ 08/03/2008 12:36:00 PM

    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...

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