Buy an SUV for America

Transportation Secretary Mary E. Peters is warning that the Federal Highway Trust Fund is almost depleted, and will have a tough time providing the funds it promised to States for infrastructure repairs. Watch for the President to ask Americans to buy SUVs to help repair our roads. SUVs use more gas; more gas means more excise tax. It is a similar program to asking everyone to go shopping after 9/11.

We have offered “at least $1 billion” to Georgia, and Alaska owes us $27 million for the approach road that Gov Palin built to the bridge that is never going to be built, wink, wink. So there is $1.02 billion that could be used for American infrastrucure that actually is used by people and really goes to somewhere. Still trying to figure the Alaska road out. Why build a road that leads to a non-existent bridge. If you are not planning to build the bridge, then you do not need a road. (Unless…you promised a construction firm the business and already spent the kickback).

The fund is financed by federal excise taxes on motor fuel, 18.4 cents a gallon on gasoline and 24.4 cents a gallon on diesel. However, the fund’s highway account is being rapidly depleted because for months Americans have been reacting to the high price of gasoline by driving less, Ms. Peters said. In May, for instance, vehicle-miles were down 3.7 percent from a year earlier.

“Time and again, the president has warned Congress of the pending shortfall and submitted fiscally prudent budgets to close the gap,” Ms. Peters said, in remarks that reflected the political nature of the long-running debate over how to pay for road building.

Whatever Congress does in the short term, some profound policy issues will have to be addressed at some point. The shift to smaller, more fuel-efficient cars in an era of expensive gasoline is the very trend that is helping to deplete the highway fund.

Could we witness a special tax on the public for being more fuel efficient and maybe helping the planet by using less gasoline? Based on the present administration's Environmental Policy, I'm sure it has been considered. I'd also not be surprised if one of the oil industry lobbyists presented a "bill" to Congress before the election for just such a tax. They may see the writing on the wall that lobbyists are on the way out.