QUOTE
Published on Wednesday,
May 9, 2007 by TomPaine.com
Coming Soon To A Toll Booth Near You
by Sam Pizzigati
Fifty years ago, almost all major corporations and wealthy individuals in the United States paid a hefty chunk of their income in local, state and federal taxes. Those tax dollars, in turn, helped build and maintain roads and bridges, sewers and schools, airports and harbors—what economists call our “public infrastructure.”
This tax-and-spend cycle helped keep America both relatively equal and efficient. The taxes on high incomes discouraged grand accumulations of private wealth. The spending on infrastructure encouraged economic growth and opportunity. In today’s United States, unfortunately, this virtuous cycle no longer spins. The wealthy no longer pay hefty taxes. Local, state and federal governments no longer invest in infrastructure. Yesterday’s United States built bridges. Today’s builds fortunes.
...
The buyout artists at outfits like Goldman Sachs, analysts estimate, will soon have $500 billion to wave before governors and lawmakers “scrambling for cash to solve short-term fiscal problems.”
These governors and lawmakers, unwilling to tax the rich to maintain America’s roads, are now taking bids to sell these roads to the rich. In Harrisburg, for instance, Democratic Governor Edward Rendell is busy privatizing the 537-mile Pennsylvania Turnpike. Last year, in Indiana, state lawmakers cut a $3.8 billion deal that gives private investors a 75-year lease to run the Indiana Toll Road. In all, $7 billion worth of public infrastructure has gone private over the last two years. The next two years, Business Week predicts, could see “$100 billion worth of public property” turn private.
Why the investor rush to public infrastructure? Leases to run toll roads and bridges amount to licenses to print money. Government highway officials generally need to win public approval before they can raise tolls. Private road managements can charge whatever tolls the market can bear.
LINK
May 9, 2007 by TomPaine.com
Coming Soon To A Toll Booth Near You
by Sam Pizzigati
Fifty years ago, almost all major corporations and wealthy individuals in the United States paid a hefty chunk of their income in local, state and federal taxes. Those tax dollars, in turn, helped build and maintain roads and bridges, sewers and schools, airports and harbors—what economists call our “public infrastructure.”
This tax-and-spend cycle helped keep America both relatively equal and efficient. The taxes on high incomes discouraged grand accumulations of private wealth. The spending on infrastructure encouraged economic growth and opportunity. In today’s United States, unfortunately, this virtuous cycle no longer spins. The wealthy no longer pay hefty taxes. Local, state and federal governments no longer invest in infrastructure. Yesterday’s United States built bridges. Today’s builds fortunes.
...
The buyout artists at outfits like Goldman Sachs, analysts estimate, will soon have $500 billion to wave before governors and lawmakers “scrambling for cash to solve short-term fiscal problems.”
These governors and lawmakers, unwilling to tax the rich to maintain America’s roads, are now taking bids to sell these roads to the rich. In Harrisburg, for instance, Democratic Governor Edward Rendell is busy privatizing the 537-mile Pennsylvania Turnpike. Last year, in Indiana, state lawmakers cut a $3.8 billion deal that gives private investors a 75-year lease to run the Indiana Toll Road. In all, $7 billion worth of public infrastructure has gone private over the last two years. The next two years, Business Week predicts, could see “$100 billion worth of public property” turn private.
Why the investor rush to public infrastructure? Leases to run toll roads and bridges amount to licenses to print money. Government highway officials generally need to win public approval before they can raise tolls. Private road managements can charge whatever tolls the market can bear.
LINK
Great, just great.