Tag: Trump infrastructure proposal

Trump coalition letter presses Abbott to keep ‘No Toll’ promise

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IMMEDIATE RELEASE

Coalition’s call for ‘No new toll taxes’ from Trump creates problem for Abbott in Dallas

Grassroots Coalition wants Governor to keep his promise, while they go on offense against Trump plan for tolls

(April 18, 2018 – Austin, Texas) The Texas Conservative Grassroots Coalition’s latest project – strong opposition to parts of the Trump infrastructure plan, which calls for toll roads and corporate welfare public/private partnerships – is being led by Texans Uniting for Reform and Freedom (TURF), Texans for Toll-free Highways, and Grassroots America – We the People PAC. The Coalition’s opposition was voiced in a letter to President Donald J. Trump and expresses widespread displeasure among Texas conservative grassroots leaders with Trump’s infrastructure plan.

“While some have called the Trump proposal DOA on Capitol Hill, we take nothing for granted and made the trip to D.C. to deliver it to the White House personally to ensure the President got the message from a BIG, red state with 38 electoral votes – we don’t want tolls!” declares Terri Hall, Founder/Director of Texans for Toll-free Highways and Texas TURF.

JoAnn Fleming, Executive Director for Grassroots America – We the People PAC stated, “We are much more confident that Texas – under the leadership of Gov. Greg Abbott and Lt. Gov. Dan Patrick – will make much sounder transportation decisions than the far-flung bureaucracy in Washington, which makes no actual progress in stopping wasteful practices or balancing the federal budget! This is why we support a federal block grant of our federal highway funds back to Texas with a bare minimum of federal strings.”

TURF hand-delivered copies to all U.S. House Members serving on the Highways and Transit Subcommittee, as well as all U.S. Senators serving on the Senate Environment and Public Works Committee (the committee that handles surface transportation legislation). In all, TURF visited more than 75 offices in D.C. last week, many of which were sit-down meetings with Congressional Members and the President’s senior staff.

The Coalition also delivered the letter to Gov. Greg Abbott, urging the Governor to stand strong against tolls as he promised to fix Texas roads without new toll taxes, (which he reiterated last fall as he directed the Texas Department of Transportation (TxDOT) to rework 15 toll projects to be completed without tolls). Last week, the Regional Transportation Council (RTC) proposed to defy the Governor, Lt. Governor Dan Patrick, and other state elected officials, such as Sen. Bob Hall and Sen. Don Huffines, who represent the area. The RTC plan advocates adding two toll managed lanes as part of the expansion of I-635 E from US 75 to I-30. Rumblings from the Governor’s office appear to suggest he’ll go along.

Abbott’s Texas Transportation Commission Chairman Bruce Bugg made his intentions crystal clear in a letter to the RTC in March that he expected a non-toll solution or no deal. Angered by the apparent about-face, grassroots leaders have drawn a line in the sand and refuse to budge.

“Managed lanes are toll lanes. Tolls are taxes. This project is not toll viable per TxDOT’s own study and requires taxpayer subsidies. Everyone will pay for it, but only the few who can pay tolls (like the $1/mile on MoPac in Austin), will ever be able to afford to drive on them,” Terri Hall of TURF explains.

In 2015, the legislature passed House Bill 20, requiring TxDOT to put explicit policies in place to ensure the highest priority projects got funded first. Yet, that’s not what happened. The majority of the new funds were allocated to low priority projects, by design, so that TxDOT could claim there’s not enough money to fix the big urban projects. This incentivizes local governments to tap a toll revenue stream for the most congested roads, which creates unaccountable slush funds outside the reach of taxpayers.

Grassroots America’s Fleming says, “This is just another problem of TxDOT’s own making. The voters gave them $5 billion more per year in new funding (with passage of Prop 1 & 7), and they squandered it on low priority projects so they could cry poverty in urban areas and slap tolls on commuters already choking under the burden of toll taxes. Special corporate interests, promoted by anti-taxpayer local government shills, benefit most from these unfettered tolling and multi-leveraging schemes.”

Fleming added, “Working families across Texas have made it abundantly clear that they do not want more toll roads. In fact, 90% of Republican Primary voters approved of a March 6 ballot resolution that stated, ‘No governmental entity should ever construct or fund construction of toll roads without voter approval.’ This means the Republican base has Gov. Abbott’s back on his strong opposition to more toll roads and more debt. His base wants him to keep his campaign promises.”

The RTC’s actions indicate if local governments lobby the Governor and his Transportation Commission for toll ‘managed’ lanes, that they’ll consider giving toll projects a green light despite campaign promises.

“It’ll be used as a model by every other local board, and we’ll end up with tolls everywhere after the Governor promised no more,” Terri Hall predicts.

The Coalition applauds Abbott’s challenge to local governments on an array of anti-liberty and anti-taxpayer local ordinances, and they expect him to continue to keep his promises for the highway system directly under the jurisdiction of the State of Texas.

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Trump plan to lift ban on tolling existing interstates draws scorn

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Trump plan to lift ban on tolling existing interstates met with stiff oppositionThe lowly taxpayer just can’t seem to cut a break. Weeks after the euphoria of passing the largest tax cut in a generation, President Donald Trump released his infrastructure proposal pushing toll roads and public private partnerships (P3s), which spells disaster for those middle class workers’ pocketbooks. The most contentious proposal being lifting the ban on tolling existing interstates.

Former U.S. Senator Kay Bailey Hutchison (R-TX) was instrumental in protecting taxpayers from double taxation by defending the ban on tolling existing interstates during her tenure, even imposing a special provision to protect Texas. Now Trump wants to provide states “flexibility to toll existing interstates.” This means the lanes you drive today toll-free could now have tolls slapped on them simply to generate revenue for big government as a new tax in the hands of unelected toll agencies or to line the pockets of private toll operators — completely out of reach of the voters.

Trump’s base sees the president as a champion of the working man. They elected him to look out for American workers by cracking down on illegal immigration, nixing or renegotiating hostile trade agreements, and putting more money back in their pockets. Now they may be asking, what good does it do to put money back in one pocket through tax cuts only to take it out of the other with confiscatory toll taxes, especially in the hands of private, for-profit, global corporations?

Groups like Alliance for Toll-free Interstates along with many grassroots groups that span the country from tea parties to pro-taxpayer organizations vehemently oppose the toll component of Trump’s plan. P3s are particularly unpopular due to the massive taxpayer subsidies and putting taxpayers on the hook for most of the funding through  federal loans and bonds.

“Tolls are a wildly inefficient tax, sacrificing money that could go toward construction to corporate profits and administrative costs. In addition to the diversion onto secondary roads which causes congestion and public safety issues, tolls will do unimaginable harm to businesses, as shipping and manufacturing prices skyrocket to account for these new costs,” said Stephanie Kane, spokesperson for the Alliance for Toll-Free Interstates. “This plan is not innovative or good policy – it is simply a nationwide plan for #TrumpTolls.”

“The Trump Administration’s infrastructure plan is choosing Wall Street over Main Street. Tolls will take money from hardworking Americans and give huge profits to toll road investors – many of which are foreign companies,” Kane said.

It’s not just commuters who worry about this new tax. Industries such as shipping and manufacturing fear the added cost tolls will add to moving goods throughout the country, increasing costs to consumers.

“Everyone understands the inefficiencies of toll collection and that a large portion goes to investors instead of road construction, but what they may not be aware of is the impact on the cost of doing business. Companies that move goods, such as UPS, rely upon the unrestricted flow of goods on interstates to move freight throughout the country. Nationwide tolls will dramatically impact the cost of moving goods, and ultimately consumers will pay a higher price,” said Rich McArdle, President of UPS Freight.

When the interstate highways system was conceived, the president and congress decided to do it with a gas tax based system rather than tolls because there would never be enough money collected in rural parts of the country to pay for their own roads. So the renewed push for tolls is looking an awful lot like a targeted tax on urban commuters — the very working class voters that comprise Trump’s base.

The federal-aid highway system has been primarily funded with a federal gasoline tax, currently at 18.4 cents per gallon which has remained unchanged since 1993. With revenue from gas tax chronically falling short of what congress spends, politicians love turning to tolls as a get-out-of-jail-free card to voting for a tax hike. But most Americans aren’t fooled by the distinction without a difference – a toll is a tax, especially when being imposed on lanes their tax money has already build and paid for.

Tolls have been and will remain wildly unpopular with ordinary citizens. The crony capitalist wing of the Republican party seems to be winning over the president in lieu of his Main Street voter base. The opposition to tolls, especially those imposed on lanes that are already paid for, will only grow stronger and louder as congress weighs the president’s proposal.