John McCain, who became the presumptive Republican presidential nominee primarily because of his strong support for the war in Iraq, frankly admits that economics is not his strong suit.
McCain proved that point this week by urging suspension of federal fuel taxes this summer to make it easier for motorists to hit the roads in the face of rising crude oil prices.
That proposal must have brought smiles to the faces of the OPEC price-gougers, who could offset the suspension of the 18.4 cent per gallon federal gasoline tax and 24.4 cent diesel tax by simply upping the price of crude oil another $8 a barrel. And why wouldn’t they? They’re determined to charge every penny the market will bear, and if McCain wants to offset the conservation effects of previous price increases with a tax cut, OPEC will happily charge America the difference.
Worst of all, McCain’s plan would trim $10 billion from the already cash-strapped federal Highway Trust Fund, further crippling maintenance on the nation’s crumbling highways and bridges.
It would be far wiser for Congress to, bear with us here, increase the federal fuel tax by a dime a gallon and rebate the extra cash to the states on a strict formula basis. Such a change would bring more than $230 million additional federal highway and rapid transit dollars to Colorado annually, based on the state’s current $441 million in federal highway funding.
But while Congress should act, we all know that waiting for the feds to do the right thing is like waiting for Godot. Thus, it’s vital that the Colorado legislature take at least a stab at raising the $500 million a year that last year’s transportation committee said is necessary just to properly maintain Colorado’s existing bridges and highways.
Toward that end, we’re intrigued by some ideas proposed by the Colorado trucking industry and other business groups. One would put a floor of $100 a year on the specific ownership tax on new automobiles. Currently, vehicles 10 years old or older pay just $3 a year on that tax.
No existing taxes would be raised under that plan, so if you’re paying $3 bucks on your 1997 Chevy, you’d still pay $3. But new and late model cars, which now pay more than $100, would see their tax drop eventually to the $100 level — but not below it. When fully phased in over 10 years, that fee increase would raise $200 million a year for highway needs.
The coalition also urged more public/private partnerships to build more high occupancy vehicle or toll lanes in major corridors, including I-25, I-70, U.S. 36, U.S. 50 and C-470, among others.
For our part, we urge the legislature to pass Senate Bill 213 by Sen. Andy McElhany, R-Colorado Springs, and Rep. Mike May, R-Parker. That bill is now pending before the full Senate and would authorize, though not require, the state Transportation Commission to set a toll of not more than $5 a car on I-70 between Floyd Hill and the Eisenhower Tunnel. Such a toll could finance up to $1 billion in bonds to ease congestion on the vital east-west artery.
As this list shows, there are plenty of good ideas for improving transportation pending before the legislature. Now is the time to act.
