As any foreign visitor to the United States can attest the infrastructure of this great country has left something to be desired over in the past few decades. The United States infrastructure spending is not what it used to be. This country used to be the on the forefront of infrastructure when it came to airports, highways, rail, etc. Lately, politicians see this as an after thought. Just look at the Hudson River crossings between NJ/NY, which are a national embarrassment. What happened?

From the left

In general, the progressives in congress would welcome a large scale infrastructure investment for several reasons:

1. It would provide mostly union jobs, which in general tend to be Democrat leaning voters.
2. States and cities that need the investment the most tend to be in blue states.
3. Raising the gasoline taxes is acceptable to the Democrats in general as it would raise revenues to pay for the infrastructure. Of course it would also encourage people to switch to more energy efficient modes of transportation.

So why hasn’t it happened then with Democratic support? For one, Obama put all the eggs into the Affordable Care Act basket. After passage of the bill the political capital was used up. Then the GOP took back congress, and they could no longer put forth any major bills. The Republicans pretty much opposed any legislation from the Democrats thereafter.

Two, under the Trump administration Sen. Chuck Schumer (D-NY) had a handshake deal with the President for a one trillion dollar infrastructure plan. However, Sen. Mitch McConnell (R-KY) wanted nothing to do with it as he opposes any bill that would fracture the Republican Senate. This is the main reason we haven’t seen a bill put forth by the GOP.

From the right

In general the Republican party would prefer to leave the United Sates infrastructure spending with the States. The GOP feels that the federal government shouldn’t be putting forth costly large scale infrastructure projects. On top of that many are prone to cost overruns, plus they tend to favor union jobs which the Republicans oppose in general.

There is also the optics of passing a large scale spending bill, for which there are truly not that many options to pay for it. A trillion dollar infrastructure bill for example, would result in very high taxes on gasoline. The federal government took in $36.4 billion in gasoline taxes in 2016, which is at 18.4 cents per gallon. So to generate and extra $100 billion per year over 10 years, you’d have to raise the gasoline tax by at least 80 cents per gallon. That’s a bitter pill to swallow, especially in election years, and especially for Republicans who are anti-tax to begin with.

Republicans would rather see private industry investment, wherein for example a company builds a highway and raises the revenue by making them toll roads.

From the center

Maas Media feels that infrastructure is key to a healthy and competitive economy, and due to the interwoven economy in the United States the federal government should play a leading role in raising the revenues for it and distributing the funds accordingly.

The fact is that the electrical car is coming, and coming fast, so why not help speed up that process by raising the gasoline tax by 20 cents per year for 5 years, so that the federal government can collect an additional $120 billion per year in revenues. Of course use some of the tax revenue to incentivize consumers to purchase electrical cars.

Secondly, the Federal governments should tag on a carbon tax to power plants that still generate energy via coal, or via natural gas. This will result in utility companies looking for cheaper alternatives in the long run. In addition, it makes the environmentally friendly (solar, wind, or hydro) options more affordable.

Maas Media feels strongly that more ecological friendly alternatives are better for the economy in the long run. Plus it is better for the health of the population. Sure, there will be opposition to the tax increases, but the alternative is having a country that is rapidly becoming a 3rd world joke (have you seen Newark Airport lately, or the Lincoln Tunnel?). The investment will pay off by:

1. Providing desperately needed jobs, especially blue collar jobs.
2. Providing projects that are visible in the community, and ultimately make it a better place to live in.
3. Keeping America in the lead economically by being able to ship goods from the Port in Long Beach, CA to New York City within a day via high speed rail, or by cutting back the commute in half for those people living in New Jersey but working in Manhattan.

Please let us know how you feel by going to the comment section or contact us.