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<p>[quote user="ComradeTaco"]</p> <p> </p> <div class="fontSizeNormal"> <p>"You can find support for my views in the primary source documentation, i.e. DOT budgets and performance reports for the Highway Trust Fund (HTF) and the Federal Aviation Administration (FAA) amongst others. They contain the primary data for my conclusions. Or you can read some of my previous posts on the subject of subsidies. I place little trust in news accounts. They tend to be cobbled together by reporters who simply don't understand the issue or even where to find the information. "</p> <p>None of the sources I gave you were news accounts.</p> <p>"It is true that user fees pay for a shrinking portion of the federal highway system for a variety of reasons. The biggest is the unwillingness of the Congress to raise the federal fuel taxes to compensate for increased highway growth and maintenance requirements. As a result in FY10 the federal government transferred $14.7 billion from the general fund to the HTF. Who pays the money into the general fund. Taxpayers with a federal income tax liability as well as those who buy the goods and services of corporations and businesses with a tax liability."</p> <p>So the cost of highways and highways alone is not being repaid by the users.</p> <p>"In FY10 46 per cent of those filing a federal income tax return paid no federal income tax. In fact, it was entirely possible for a family of four with an adjusted gross income of $50,000 to not only not pay any federal income tax but receive back a small check from the federal government. Accordingly, the taxes were paid for the most part by filers with median incomes of more than $50,000 per year, with more than 75% of the federal income taxes paid by those with adjusted gross incomes of $100,000 or more. You can find this information in the IRS statistical tables. If you know how slice and dice the numbers you will be able to verify my numbers. "</p> <p>That's a lovely little statistic. However, those who pay no federal income pay state payroll tax, federal payroll tax, property taxes and state/local sales taxes. Parents supporting two children on less than $50,000 a year (even less when applying the aforementioned taxes ) is a terrifying prospect, particularly with many four year college programs costing as much as a small home. Perhaps it is not a travesty that 46% percent don't pay, but rather it is a travesty that 46% don't have enough to pay.</p> <p>"There are approximately 223 million adults in the United States, being defined as persons over 18 by the U.S. Census Bureau. This data can be found in the U.S. Statistical Abstract, although it do requires some analytics. Of this number approximately 210 million or 94% of adults have a driver's license. Included in this group would be people who paid federal income taxes as well as those who didn't. For analytical purposes, lets assume that the ratio is the same as the ratio of those who actually paid taxes in FY10. This means that those who paid taxes into the general fund had some of their monies transfered to the HTF, which was used to help fund the construction and maintenance of the federal highway system that benefits all those who use it, i.e. those who had a federal income tax liability in FY10 and those who did not. This is what I mean by indirect payment. It is a subsidy to the extent that wealthy motorists, who pay income taxes, subsidize those who don't, at least on the federal highways."</p> <p>So the Federal government subsidizes the construction and maintenance of highways through taxes general taxes as opposed to user fees.</p> <p>"But the picture gets murkier. The feds collect 18.4 cents on a gallon of gasoline and 24.5 cents on a gallon of diesel. One might think that this all goes to the HTF. Nope! Two cents goes to the Mass Transit Administration and four cents goes for general deficit reduction. Thus, motorists are subsidizing mass transit and helping to defer the deficit. You can find this information at DOT."</p> <p>But the motorists themselves are being subsidized by the federal government.</p> <p>"In Texas, where I live, state highways are funded through a variety of user fees similar to those collected by the federal government. The major fee is the state gasoline tax. But not all is as it appears for 25% of the fuel taxes in Texas go to education. Not highways! And a small but growing amount goes to fund the Heartland Flyer and the Trinity Railway Express. So who is subsidizing who?"</p> <p>However,state fuel taxes consist of only 32.1% of the total appropriations for Texas Highways.Much of the remaining sum comes from the HTF which is running a deficit even with poor maintenance. So, it's a massive subsidization mess involved at the federal and state levels funded by curiously complex mechanisms which themselves are inadequate to provide proper upkeep. Looking purely at the 80 billion dollar funding gap which will occur with inaction by 2030,we find that the subsidies are not being repaid or being paid by users.</p> <p>"County roads, farm to market roads, city streets, etc. are funded in most places from property taxes. But in many places they get transfers from the federal and state governments. To grasp the complete complete, you, not to mention the reporters for the so-called evidence that you cited, would have to go through the financial statements of every city, county, and state of the United States to get a complete picture of who pays for the nation's roadways. Good luck!"</p> <p>Reporters? Since when is an Assistant Professor at MIT a reporter?</p> <p>It's the equivalent of asking someone if they watched the nightly news only to receive a retort about the unreliability of using telegram-based wire services. Entirely non sequitur.Regardless, you say yourself that local roads are funded from a common tax upon all those apply as opposed to users, or in other words, subsidized. With this final statement, you admit that you don't know where the money comes from. So how can you say</p> <p><span>"The so-called hidden subsidies that went into air transport and highways have been repaid or are being paid by the users"</span></p> <p>if you clearly do not know?</p> <p>"Information regarding the Aviation Trust Fund, as well as airport funding in the United States, is available if you know how to dig it out. If you want an in-depth view of the subject, you should consult the financial reports for each airport in the United States. Over the years I have looked at every one for the major airports in Texas. They are usually available on-line. And if you want to know how the European rail system is funded, again the information is available from financial and operating reports that are available on line. Most of them are in English."</p> <p>None of your points are defended here. You simply state that the mechanisms that fund roadways are extremely complex and involve quite a bit of government money which does nothing further to substantiate your opinions [/quote]</p> <p>This response is not worthy of further comment.</p> <p> </p> </div>
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