Thursday, September 06, 2007

5-cent gas tax hike proposed for bridges' repairs

The AP reports:
House Democrats feuded with Republicans and the Bush administration Wednesday over raising gasoline taxes to pay for safer bridges.

A month after an interstate bridge collapsed in Minneapolis and killed 13 people, the government is struggling to develop a long-term way to pay for repairs and new construction.

The chairman of the House Transportation and Infrastructure Committee promoted his plan to increase the federal gasoline tax from 18.3 cents a gallon to 23.3 cents. The additional money raised would go to a bridge trust fund.

Such a step is necessary, said Rep. Jim Oberstar, D-Minn., because Congress cannot solve the problem with a "bake sale."

But President Bush's transportation secretary, Mary Peters, told the committee that "increasing federal taxes and spending would likely do little, if anything, to address either the quality or performance of our roads." Peters urged better use of existing money.
In the private sector failure means less money.In the public sector failure means more money.