Brent P wrote:
> On 2008-05-10, Bolwerk <no@way.org2> wrote:
>> Brent P wrote:
>>> On 2008-05-10, Bolwerk <no@way.org2> wrote:
>>>> Brent P wrote:
>>>>> On 2008-05-10, Bolwerk <no@way.org2> wrote:
>>>>>
>>>>>>> In general, no, transit will not. It's government run, it does not
>>>>>>> respond to customers.
>>>>>> Other than rail freight and passenger airlines, the latter certainly
>>>>>> heavily subsidized, what transportation system isn't run partly or in
>>>>>> whole by the government?
>>>>> Transit, is run all the way down to routes and times. All the government
>>>>> does in roads is road building.
>>>>>
>>>>>>> Such money comes from general taxes and taxes on driving. As the economy
>>>>>>> and driving slows the money for transit projects will dry up.
>>>>>> That's nonsense.
>>>>> It's the absolute fucking truth. Here in c(r)ook county IL the sales tax
>>>>> was increased to pay for transit. That's in addition to the funds they
>>>>> get from general taxes from the state, county, and city of chicago.
>>>> That seems more sensible and stable than a general appropriation. At
>>>> least then there's a dedicated, consistent funding source. Of course, I
>>>> get the impression Chicago isn't exactly fiscally responsible with
>>>> *anything*.
>>> It's stealing plain and simple.
>
>> Then so is highway funding. Or, uh, any taxes.
>> Okay, I can go with that!
>
> In this case it is directly stealing. People are taxed, stolen from
> using government as the weapon to provide for other people. At least
> with roads, the taxation scheme means that what taxes not paid by
> drivers are for the localist of roads, the ones that non-drivers also
> benefit from. Even if you do not drive, it's handy to have a road near
> your property.
Well, that's certainly very abundant with highway transportation
funds...used for highways in states where the money didn't come from.
But it's also no doubt at least as handy to have a transit line near
your property, whether you drive or not.
Anyway, since I don't really drive anymore, I guess I'm being robbed
pretty blind having to pay for roads other people use.
>>>> Maybe at one time gas tax revenue did cover the expenditure. Anyway,
>>>> that's simply not true anymore, if it ever was. Roads haven't turned to
>>>> dust because they are paid for out of some combination of general
>>>> appropriations, local sales taxes, local property taxes, tolls, and gas
>>>> taxes - obviously varying by state and route.
>
>>> It's simple math. There is X tax money collected for roads. A
>>> portion of X is used for other things, call this Y. X-Y is what is spent
>>> on the roads. No other funds are diverted to roads, the taxes collected
>>> explictly for roads are used on roads and a whole host of other things.
>
>> Yes, very simple math.
>
>>> The game works like this... people expect roads, so the government
>>> diverts the road money to the things it wants. Then it goes to the
>>> people and says 'there is no money for the roads we need to increase the
>>> taxes'. That's how it works. Money from other funds does not go to road
>>> building, only those taxes specific to the roads. Some are to the
>>> drivers, some are more general like on property taxes, but each is set
>>> for road use like the sales tax increase here in c(r)ook county is set
>>> for transit use.
>
>> Okay, that theory is easy to test.
>
>> In 2003, $9.1 billion of federal/state/local road taxes went to
>> "general" purposes. An additional $11.8 billion was spent on transit.
>> That's out of $103.4 billion (that's X above) in combined federal,
>> state, and local tolls, gas taxes, and vehicle taxes.
>
>> Even if 100% of that were used on the road system, that wouldn't cover
>> the $139.2 billion expenditure (that's Y above) on highways for that
>> year. So, factor in the difference, the best you can argue is roads
>> were subsidized to a tune of $35.8 billion in 2003.
>
>> So, in 2003, X - Y ~= -$35.8 billion
>
>> If no other funds are diverted to roads, the highway transportation
>> system must have one hell of a piggy bank.
>
> It's real nice when you can pull numbers out of your ass and use
> creative interpetations. Not to mention not citing anything so that your
> little hocus-pocus cannot be revealed.
It's even nicer when the numbers I pulled out my ass are the numbers the
government pulled out of its ass, and my creativity is only as deep as
the government's accounting department on this. If you have better
numbers, I'd love to see them.
And, BTW, I'm really dealing with highway routes only it seems (though I
don't know how those are delineated from other road routes exactly).
But if you want to include the entire road system, be my guest. That
makes the whole thing even more subsidized.
> Anyway.... Here's where you probably went wrong, on purpose:
>
> 1) You included various most local road costs but did not include the
> revenues on the most local roads from property taxes. It is a typical
> thing to only include per gallon gasoline taxes (usually fuel taxes
> are layered with different names) and maybe registration.
I told you want I counted. Revenues from tolls, gasoline taxes, and
vehicle registration taxes - the FHA calls these highway user revenues.
Property taxes are a subsidy in addition to that (and yes, property
taxes are spent on the highway transportation system).
> 2) Toll road costs were included but not toll revenues.
Quite the opposite. Toll revenues were included, but I ignored the
administrative aspects of running a toll road (presumably, those would
be the same no matter where the money is going). Same for other
revenue sources. Apparently it costs billions of dollars to collect
these taxes/fees, which I ignored. But that doesn't help your argument
one bit.
You're confusing the number for funding source receipts with
expenditure. The point is expenditure on roads alone exceeds user
revenues.
> 3) Bond issues were counted as spending all in the year of the project.
That's sort of the point here, no? You count what it costs (Y), not
where the fund to pay the costs come from (X, in your jargon).
> Basically your 'math' lowers the revenues and increases the costs.
>
> The fact of the matter is, if roads sucked money from the general fund
> instead of being sucked from, the government would just spend the
> general funds on transit, bike trails, police checkpoints, and other
> nonsense because the general funds don't require jumping through the
> hoops to spend on whatever they want to spend them on. The road taxes
> require new legislation to divert. It's a higher resistance path. They
> have to work to unlock a specifically set up pile of money. If more was
> spent on roads that what was collected for them, there would be no pile
> of money to unlock. Therefore, the only reason roads could look like
> they are taking from general fund is by a creative presentation.
Now *that's* a creative presentation.
I don't necessarily agree with them, but there are all kinds of reasons
to use road money for non-road purposes that may even be kind of benign.
The availability of funding is a pretty good reason. Excess funds
available now can be used immediately, which could be cheaper than
issuing a bond and taking on additional debt. When the general revenue
comes in, the money can be paid back (or not).
Personally, I think funding mechanisms for this or that should be out in
the open, and generally as close to the source of the need as possible.
For instance, whatever can't be paid for with user taxes/fees on
highways should either be handled with upfront appropriation or
dedicated tax of some sort.