I have been complaining for a long time that our governments- federal, state, and local- are doing us, the citizens, a grand disservice. They have basically shirked one of their primary duties- to maintain and upgrade our infrastructure. To be honest, upgrading is so far from what they’ve done, I’m sure that most of us would be thrilled with their simply maintaining what we have.
And, here’s where you are going to be angry with me. Because it’s going to take an increase in taxes to get this done. Stop groaning! You know I’m right. And, I know that most of us have just experienced a 2% increase in payroll taxes. Because that ill-advised holiday that we enjoyed during the first part of the Great Recession has been eradicated. (This holiday is one of the reasons why our Social Security System is a little more precarious right now. We did not properly feed the ante for two years…Why we are not raising the cap on payroll taxes from the current $ 113,700 to $ 200K which would solve that problem- through the end of this century- is beyond me…)
Given that the current government thinking (OK, forgive the oxymoron) is that tax increases should only be temporary, my realistic solution to our infrastructure problem is a temporary 0.5% surcharge on our tax rates- for ALL adjusted gross incomes that exceed $ 35K. (This is roughly the cutoff point that would collect taxes from the top 50% of all taxpayers.) That means $ 175 in additional taxes on the low end; for the top 1%, we should be able to collect an additional $ 7K or so. These taxes should expire BEFORE the end of Obama’s term- at the end of calendar year 2016- automatically. No additional votes. And the funds should be allocated strictly to infrastructure, appropriated to each state on a population basis. Believe it or not, this will support our infrastructure needs by $ 1000 for every single American. That’s a big amount- even if lasts for only three years.
Before you keep complaining, consider these real facts. Our infrastructure has fallen from being the best in the world to almost the worst among industrialized nations. The American Society of Civil Engineers (ASCE) just reported that we need to spend $ 1.1 trillion by 2020, just to break even. (That means to preclude MORE power outages, bridge failures, etc. than we are currently experiencing. Their final report will be released on 19 March 2013.) That’s about what my proposal will raise. (O.K., it could be short by less than $ 200 billion, but we do have a few years before 2020. And, with the growth in the economy, those taxes will probably be collected anyway.)
The bipartisan study group, Building America’s Future, echoed the results reported by the ASCE report. The World Economic Forum also reported similar dire straits.
The rail system in the US is ranked 18th in the world, our airline transportation system 30th, among other salient infrastructure shortfalls. Shanghai’s port handles MORE containers in a given year than the top 8 ports in the US combined, in spite of the fact that 60% of all we make in the US is exported. And, you wonder why our balance of trade sucks?
So, do you still think that surcharge is wrong?
One day you will be seen as a prophet, Roy. Unfortunately, people only realize the prophetic things after the disaster that was impending that you warned about has already happened. We are at times a short sighted people. I agree with you, the infrastructure NEEDS attending to. I think history teaches (if ancient Rome is an indicator) when the infrastructure fails so too does the country. Of course the Romans had a lot of political issue that also tore itself a part…hey…wait a minute…that seems like deja vu! Don’t know why…hmmm…
Lisa Brandel recently posted..The Hummingbird by Lisa Brandel
Rome wasn’t built in a day, Lisa- but it sure looks like it fell in close to one. That’s not the outcome I desire for our civilization.
I hear ya I just don’t like it. But we can’t let the US just keep going downhill in so many areas either.
shawn recently posted..The Basics of a Good Elevator Speech
I don’t like the fact that our roads are decaying, our bridges are falling, and our power systems are not available 24 X 7, Shawn. That’s why I thought we were paying taxes…
I don’t know how much more I would wind up paying in taxes, but I know first hand how bad the roads are around here and the thought of broken bridges makes my stomach fall in anticipation of such another catastrophe. No electricity? No computer? No refrigerator? Yikes.
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I am pretty sure that many of us will pay more in taxes and save some on repairs to our cars. Others will save on their power costs. So, the net effect may not be as high as the 0.5% surcharge, Ann.
Interesting!
This model also holds that all that infrastructure investment will create jobs and stimulate the rest of the economy, doesn’t it?
Cheers, Gordon
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Yes, Gordon, spending that money will put people to work, it will save others time on their commute (to do other things), and this will help provide the multiplier effect we want to grow our economies.
I agree that the American infrastructure needs to be maintained and upgraded. It is hard to believe that the government has put this important need at the bottom of their list of priorities.
This procrastination will cost us dearly in the future.
Janette Fuller recently posted..Michael Hyatt Launches Platform University
I believe that our governments are more interested in helping their friends- the ones who provide them money to run for election, than they are in meeting the needs of the citizens, Janette!
I wonder where the tipping point is. How bad do things have to get before people demand funds be spent at home rather than afar? Sadly, we all have a front row seat to this unfolding drama.
Dear Carolyn:
We can start by notifying our Congressman and Senators that this IS what we want and need. Because if we don’t pressure these folks- who generally have secure seats and don’t have to worry about opposition, then they will consider what they are doing perfectly acceptable on the home front. Even if it isn’t.
Sounds like a wise investment with all levels of workers benefiting.
Carolina HeartStrings recently posted..AVOCADO PESTO
Now, if I could only introduce that bill on the floors of Congress, Alessa! 🙂
Barry Ritholtz (@FusionIQ) and of Washington Post has the same idea- let’s get it done NOW- while it’s still cheap http://www.washingtonpost.com/business/fix-infrastructure-on-the-cheap-while-you-still-can/2013/07/11/ac0595c8-e51c-11e2-a11e-c2ea876a8f30_story.html