The Koch brothers just kicked mass transit in the face

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By Ben Adler on 3 Feb 2015 44 comments


A coalition of conservative pressure groups has defeated any hope that congressional Republicans would back a gas tax increase to fund our nation’s transportation.

A higher gas tax is badly needed. The gas tax has not been raised since 1993, even to keep pace with inflation. As Americans drive less and vehicles become more efficient, gas tax revenue falls. Meanwhile, our infrastructure crumbles.

But last Wednesday, some 50 anti-government groups, including Koch brothers front group Americans for Prosperity (AFP) and other recipients of the Kochs’ largesse such as Freedom Partners, sent a letter to Congress calling on it to oppose any increase in the federal gasoline tax. Among their chief complaints, “Washington continues to spend federal dollars on projects that have nothing to do with roads like bike paths and transit.”

It’s part of the right-wing and Koch network’s coordinated national attack on transit. As Streetsblog’s Angie Schmitt has reported, the Kochs are going after transit in local referenda. Local AFP chapters have been leading the charge against transit expansions in regions like Indianapolis and Nashville. Last month, Urban Milwaukee reported AFP is trying to block a streetcar project. And Randall O’Toole, the anti-transit flunky at the Koch-funded Cato Institute, is arguingagainst a new line on D.C.’s metro that would link the urbanizing inner-ring Maryland suburbs.

The Kochs make their money largely in fossil fuels. They, and other backers of conservative pressure groups, oppose the gas tax because they see it as a disincentive for driving. The Kochs especially hate public transportation because it gives their consumers an alternative to driving. Taxing emissions is the way to recover some of those costs from the polluters themselves. Taxing just gasoline is a poor substitute for taxing CO2, but it’s a start. The gas tax should be set high enough to bring in more revenue than we need for highway construction and maintenance, because it should also give us money to compensate for the cost of car pollution. That extra revenue should go toward programs that liberate us from dependence on cars, like mass transit. Without an adequate gas tax, we’re all subsidizing driving, first by paying for the roads with general tax revenues and then again by sticking society with the health care and lost business costs from smog and climate change.

In their anti-gas tax letter, Schmitt writes, “The billionaire-friendly coalition is trying to play the populist card,” by complaining about the cost burden on poor families. But many of the poorest families cannot afford a car and so rely on transit. Refusing to raise revenues for transit will hurt them most of all.

According to transit advocacy insiders, the letter dealt a devastating blow to fragile hopes that the gas tax would get a long-overdue increase as part of reauthorizing the federal Surface Transportation law. “The letter just killed our momentum, I think permanently,” said an official at the American Public Transportation Association, who requested anonymity in order to speak frankly.

It’s unclear how much momentum was there in the first place. Congressional Republicans have been refusing to raise the gas tax ever since they took over Congress in 1995 and tried to repeal the 1993 increase. Anti-tax, anti-government orthodoxy has only grown more powerful within the GOP since then. Republican demagogues like former House Speaker Newt Gingrich have continued to mockmass transit as only of use to coastal elites. And the Tea Party movement has grown curiously obsessed with opposing smart growth. (That obsession has not just grown up organically: AFP hands out brochures attacking transit and sustainable city planning as part of the U.N.’s “Agenda 21” conspiracy to control your community.)

But there were signs of hope. In the first week of January, Senate Republican Conference Chair John Thune (R-S.D.) and Environment and Public Works Committee Chair James Inhofe (R-Okla.) said Republicans might want to boost the gas tax. Days later, Senate Finance Committee Chair Orrin Hatch (R-Utah) said a higher gas tax is “a small price to pay for the best highway system in the world.” Inhofe admitted to The Hill that his colleagues would probably reject covering the entire Highway Trust Fund shortfall with new gas tax revenue, but he suggested that maybe they could combine a modest gas tax increase with another new source of funding.

Even then it was unlikely. Hatch, Inhofe, and Thune are all conservatives from conservative states. Inhofe is the Senate’s leading denier of climate science. But even the Senate Republican caucus’ right wing looks moderate next to its counterparts in the House of Representatives. As conservative as Utah and Oklahoma are, some House districts lean even further right. And most House Republicans are not veteran legislators, accustomed to the practical constraints of running a functioning country. Indeed, from the government shutdown and debt-ceiling negotiations, it isn’t so clear that House Republicans even want the country to function.

And so, while veteran senators considered raising the gas tax, House Speaker John Boehner (R-Ohio) said the votes weren’t there. Just days later, on Jan. 15, House Ways and Means Chair Paul Ryan (R-Wis.) said flatly, “We won’t pass a gas tax increase.”

Even so, smart growth and mass transit supporters held out hope. In theory, transportation should have different politics than welfare. It is, as Inhofe points out, a user fee for driving on the roads, not a redistributive tax. Every state needs its roads, and most of the gas tax money goes back to states automatically rather than to the poorest areas.

But the conservative base exercises enormous power over congressional Republicans. “[Senate Majority Leader Mitch] McConnell said no [to raising the gas tax] soon after the letter was released, and now everyone is trying to find alternative ways,” says the APTA official. “It was impressive, in a depressing way, how much clout that letter had.” (Environmentalists, who sent a letter to President Obama asking him to stop promoting fossil fuel production, to no avail, can only dream of having such influence over Democrats.)

What other options do we have for funding our crumbling transportation infrastructure? President Obama is now proposing to raise transportation revenue through corporate tax reform. Republicans may reject that too. Ryan’s office has already said closing corporate tax loopholes should be used only to lower corporate tax rates, not to raise revenue. And the same coalition of conservative action groups is likely to try to block Obama’s proposal. After all, in their letter they assert, “transportation infrastructure has a spending problem, not a revenue problem.” Instead of finding a way to pay for transportation needs, they argue, Congress should cut the spending down to the constantly shrinking revenue.

The end result will probably be that transportation spending gets extended again at current, inadequate spending levels with the revenue shortfall covered with some short-term patch that Republicans can live with. That would hardly be a bold vision for the future, but few things that come out of Washington are these days.


http://grist.org/climate-energy/the-koch-brothers-just-kicked-mass-transit-in-the-face/

smh
 

CHL

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"AFP hands out brochures attacking transit and sustainable city planning as part of the U.N.’s “Agenda 21” conspiracy to control your community."

:snoop: :snoop: :snoop:
 
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But last Wednesday, some 50 anti-government groups, including Koch brothers front group Americans for Prosperity (AFP) and other recipients of the Kochs’ largesse such as Freedom Partners, sent a letter to Congress calling on it to oppose any increase in the federal gasoline tax. Among their chief complaints, “Washington continues to spend federal dollars on projects that have nothing to do with roads like bike paths and transit."
:salute: koch industries on THIS one, idgaf
 
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who needs trains and buses when you have private jets :stopitslime:
You're a fool if you believe that gas tax revenue is being used to improve buses and trains...THAT money in liberal states especially is being used to build billion dollar tunnels, 'new bridges' where they arent needed, its being used to make lanes more narrow for BIKE LANES, and buses are raising fares and cutting routes as a result.

Koch brothers have scumbag motives but fukk this theory of "we NEED HIGHER GAS TAX" bullshyt, and my god read that article and tell me the bias isnt real.
 

Scientific Playa

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Here's How Americans Are Spending Their Cheap Gas Windfall Money..

Date: Wednesday, 4-Feb-2015 21:45:46

Charles and Cheryl Saul are reaping a timely windfall: an extra $500 a month thanks to cheap gasoline.

The couple, both 56 and from Emmaus, Pennsylvania, drive a lot so filling the tank didn’t leave much room for fun. Now they’re splurging after years of staycations, minor-league baseball games and free concerts. In October, they visited Disney World, their priciest vacation in ages. They’re also planning to renovate, meaning more trips to Home Depot Inc.

“We’re finally starting to feel like we’re back in the middle class,” Cheryl Saul said.

Millions of Americans are benefiting from the collapse in gas prices, which Goldman Sachs Group Inc. equates to a tax cut worth as much as $125 billion. That’s potentially good news for a range of mass-market companies that have struggled while upscale establishments catering to wealthy Americans prospered. Family Dollar Stores Inc., Popeyes Louisiana Kitchen Inc. and McDonald’s Corp. all say they’re benefiting from lower gas prices or will in the second half.
Drop in Fuel Costs Benefits Americans

Gas Windfall: Americans Benefit From Drop in Fuel Costs

Interviews with two dozen consumers around the U.S. captured a more ebullient—if wary—mood. Americans are starting to travel more, eat out and hit the mall. Buoyed by the biggest employment increase since 1999, they’re gaining the confidence to spend more freely, which will help the world’s biggest economy sidestep a global slowdown. While the economy expanded at a slower pace than forecast in the fourth quarter, consumer spending rose 4.3 percent, the most since 2006.

In recent weeks, the shares of such consumer bellwethers as Wal-Mart Stores Inc., Walt Disney Co. and American Airlines Group Inc. have flirted with record highs.
Economic Boost

Still, even with gasoline selling for less than $2 a gallon in much of the U.S., the economic boost will take time to work its way through a $17.8 trillion economy. Last month, Family Dollar Chief Executive Officer Howard Levine said lower gas prices “are very much a positive for our customer” but acknowledged the impact is “hard to see yet.”

Browsing for bargains in a Family Dollar magazine.
Photographer: Michael Nagle/Bloomberg

Having lived through so many false dawns, some Americans aren’t exactly spending with abandon. Evan Lee, a 42-year-old lab manager from Queens, New York, is going out more but most of the $20 or so savings per tank is going right in the bank.

“I’m afraid it’s gonna go back up soon,” he said. “This is too good to be true, right?”

Typically, it takes 12 months before shoppers start spending their gas savings at stores, according to Goldman Sachs. That means retailers should start to get a real boost in July, a year after gas prices started falling.
Vegas Visits

At the moment, many Americans are using the savings to fill up more often and drive further. In November, Americans drove 241 billion miles, the most for that month since 2007, the government said. Auto traffic to Las Vegas rose in the last quarter of 2014, after being down six of the previous nine months, according to the Las Vegas Convention and Visitors Authority.

The Greenlees of Saratoga, California, have been taking a lot more road trips. Janelle Greenlee makes as many as three 40-mile trips a week to Palo Alto for her daughter’s medical appointments. Her husband has a 45-mile commute. Thanks to lower gas prices, the family is saving almost $200 a month and taking more hour-long drives to San Francisco with their three kids to spend the day at the Embarcadero waterfront.

“Those day trips are a big deal to us,” said Greenlee, 38. “We’ve been eating ungodly amounts of food and watching our boys ride scooters and skateboards.”
‘Extra Money’

On average, Americans save a paltry 5 or 6 percent of their incomes so about 95 cents of every dollar of gasoline savings will be spent, according to Michael Gapen, chief U.S. economist at Barclays Plc. Restaurants and retail stores will benefit most, he said in an interview.

Monica Gamble, 23, of Oakland, California, is a case in point. A waitress who is working toward a degree in health sciences, Gamble recently hit the local Walmart, where she spent some of her gas savings on additional school supplies, including notebooks and a graphing calculator.

“The extra money comes in handy,” she said.

Much of the impact of lower gasoline prices is psychological, largely because they’re posted in two-foot numerals at gas stations across the country. It’s much like the so-called wealth effect, except that in this case it’s not high earners feeling richer amid a bull market. It’s middle-class Americans feeling better about their prospects because low gas prices are providing a tailwind to an already improving economy.
Home Depot.
Photographer: Ron Antonelli/Bloomberg
Visible Prices

It wasn’t simply the $40-per-month in gasoline savings that prompted Melanie Gold, 46, to buy a United Airlines ticket to visit a friend in New Mexico she hasn’t seen in 18 years.

“I can’t say I’ve been setting 10 bucks aside each week,” said Gold, who commutes to her editor job in New York from Bangor, Pennsylvania. “But that’s my justification for making the trip. Gas prices are very visible.”

That can cut both ways. In Houston, low gas prices are a reminder that the U.S. oil boom has hit a wall because a worldwide glut has made fracking less economical. Cordell Marshall, who has toiled in the industry for 30 years, is getting less work these days.

“It’s bittersweet,” said Marshall, who has worked for producers including ConocoPhillips. “I’d rather pay higher gasoline prices and be able to earn money to make ends meet.”

Some Americans wonder how long it will be before gas prices reverse course and are spending the windfall now while the getting is good. Raymond and Valerie Frost, a 20-something couple from Oakland, are spending most of the $80 a month in gasoline savings on clothes for their three kids or eating out.

“We have to enjoy it before gas prices go back up,” Raymond Frost said. “This isn’t going to last.”

http://www.bloomberg.com/news/articles/2015-02-02/how-we-re-spending-our-windfall-from-cheap-gas
 

the cac mamba

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You're a fool if you believe that gas tax revenue is being used to improve buses and trains...THAT money in liberal states especially is being used to build billion dollar tunnels, 'new bridges' where they arent needed, its being used to make lanes more narrow for BIKE LANES, and buses are raising fares and cutting routes as a result.

Koch brothers have scumbag motives but fukk this theory of "we NEED HIGHER GAS TAX" bullshyt, and my god read that article and tell me the bias isnt real.
nah i agree on that.

but these dudes just spent 900 million dollars on the upcoming election and the ROI is gonna be expected :heh:
 
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