Obama Administration Moves Toward Tolls On Interstate Highways

220px-Atlanta_75.85I have previously written about the proliferation of toll roads in the United States as governments shift the cost of highways to citizens while spending wildly on foreign wars and losing billions of waste. Congress allows billions to literally disappear in places like Iraq and Afghanistan or give billions in aid to affluent countries like Israel, but it insists that American citizens already struggling financially should be forced to pay to use their federal roads. The change is a fundamental shift in our approach to highways which were viewed as the basic service supplied to taxpayers. However, the Administration has quickly open the door in the new transportation bill to end the long tradition of free federal highways. Of course, do not take too much cash on the highways, because it can be seized by police in the growing number of pretext stops called “policing for profits.”

This move follows states like New Jersey closing bathrooms and ending other basic programs. It seems that there are fewer and fewer benefits that citizens can expect for their taxes. They must pay the government and then pay again to use basic government services. This is an effective tax disguised as a toll that will hit low income people the hardest and add a new barrier to their securing or maintaining jobs. I could not care less about the cost but there are many, many families where this seemingly small added toll will be a hardship. It is cumulative for such families. At every turn, they are being asked to pony up for government services. While the Administration and Congress talks a good game about fighting for the shrinking middle class, it routinely shifts more and more costs over to such families while using tax dollars to literally deliver bags of money to such corrupt officials as Hamid Karzai.

The reason for tapping drivers is ironically the success of fuel efficiency standards. The Highway Trust Fund contains a 18.4-cent federal gas tax, but the advances in cars has reduced such revenues so the Congress has to find a new way to tap drivers without using the word “tax”.

The highway trust fund will face a $63 billion shortfall over the next four years. That is a fraction of the money that we burned in Iraq and Afghanistan and continue to throw abroad.

Of course, citizens could move to secede to Iraq and ask for their highways to be built for free on no-bid contracts.

On another example of how such fees can impact families, we recently received a return payment on our Virginia taxes. Rather than send a check as in the past, Virginia now sends you “Way2Go” debit cards from Mastercard. However, if you try to get the money transferred to your bank or make inquiries you face a series of potential charges. For example, if you call five times, they charge you. (We try to reach the contractor repeatedly and we cut off or misdirected — triggering the penalty). If you lose the cards (which is easy because they look like free credit cards), you are hit with multiple charges. You can only inquire a couple times about your balance or . . . you guessed it . . . you are charged. It appears a system designed to get citizens to pay charges to a contractor, a prospect far more likely for the elderly. The charges seem wired into the system — added charges that are treated not as a tax but administrative costs imposed on taxpayers. Again, despite the time and hassle of getting the money transferred, we were not concerned about the charges. However, we immediately thought of the many elderly taxpayers who will either not use the cards, throw them away in ignorance, or fall into the trap of these hidden charges: all this to get their money that was over-paid to their government. Here is a list of the charges, but you will have to use the Virginia Department of Taxation website.

Source: Washington Post

127 thoughts on “Obama Administration Moves Toward Tolls On Interstate Highways”

  1. What a piece of crap “O-Bummer” has turned out to be…. Sure ‘Boy’ raise tolls on the working people who need to use those roads to get to work. I’m sorry I ever contributed to your election…………. PUTZ!

  2. I do not agree at all. There is enough tax. Time to cut back on worldwide spending that results in continual blowback and constant death for people abroad. Are Iraq, Afghanistan, Egypt, Libya, Venezuela, central Africa, and Ukraine–plus the other countries where we are trying to start more “color revoltions” doing well with our money? You could make some really nice roads here with that cash–with recharging stations and free food… beer… party hats… and… still be much further ahead than the billions we push out. Too bad the road builders don’t run the government like the banks and defense contractors. Plus, the middle class is paying enough. Hard to get blood from a turnip.

  3. The tolls are not a good idea. Hope this was just a run up the flag pole see if anyone saluted. The salutes all seem to be with one finger.

    I avoid tolls as a matter of principle.

    The only time I paid tolls is when going to NYC via I80 (Delaware Water Gap bridge) and the bridges going into the city. I don’t go there any more. (There are guys riding around with computers checking license plates and, apparently, out-of-towners get targeted to have their cars towed. It costs hundreds of dollars to get your car back. The towers do not find the cars in garages but NYC no longer has much appeal.)

    I’ve traveled all over the country, sometimes by noting the major highways running more or less parallel to the direction I’m going. I take the side roads. As long as I don’t cross one of the highways I’m going in the right direction. It takes longer to get where I’m going but it’s the journey, not the destination that provides the best memories.

  4. The highways have always been paid for through user fees, largely via fuel taxes, and not general taxes. Cars are more efficient but roads are still expensive. Raising fuel taxes, which haven’t gone up since 1993, is the most obvious answer but politically unpalatable. The toll proposal is an attempt to maintain the user fee model, though a poor one. Vehicle miles traveled fees would be more applicable, but face resistance due to largely unfounded privacy fears. We’ve also diverted highway user money to pay for public transit in urban areas, which is its own injustice. If fuel taxes were still simply paying for the roads used by the people paying for fuel we would not have a shortfall.

  5. I don’t know about other places, but in South Florida the Florida Turnpike and many other roads are already tolled.

    And all these years I thought it was the gasoline tax that paid for roads and transportation infrastructure. With 48.8 cents per gallon from both Federal and States taxes and 133 billion gallons of fuel sold annually, you would think that’s enough. You probably have to factor in the waste, corruption and pork, to get to the problem of why that’s not enough money.

    Corporate welfare has always played a huge role in politics. They subsidized the various railroads in the 1800s, although not necessary; a favored game of the Republicans and their favored railroad lawyer; Abe Lincoln. And everyone thought he was the poor self educated lawyer living is a small log cabin in the backwoods, yet he often traveled in his own luxury railcar.

    Why do you think it is that the government’s historical curriculum has tried so hard to maintain so many of the myths surrounding Lincoln?

    I place it on the same concept of why they have tried so hard to make us believe that Christopher Columbus discovered America when we all know the Native Americans were obviously here already. To justify the confiscation of their lands.

    With Lincoln, I believe as do many, it is to coverup the abolition of States Rights and thus the increase in the central government power by the Federalists, espeicaly during his administration that opened to door for future abrogations of the Constitution and the usurpation of individual rights.

    The economic principle is that competing soverigns, i.e. the States vs. the Federal Government, is a checks and balance against centralized authoritarian powers.

  6. I agree with fenyman. And add you can thank the TeaTaliban for again undercutting American infrastructure to further their Randian goals of a USA by and for the 1%

  7. rcampbell

    Very well said.

    If you run a 501c4, I’d be happy to send you a check. Your message should be broadcast nationwide. No need to attach it to any party. We’ve forgotten the basics.

  8. It is disgusting. I hate to disagree, but Obama can definitely take some of the blame. He is the President. Part of the reason he got in was to put the hammer down and stop some of this madness. We have maniacal officials and contractors involved in about every country in the world–it’s time to turn off the faucet before dollar becomes irrelevant. Most folks you talk to seem to think our economic system is a law of nature, like gravity–and it is not at all, and it can be rejected and replaced at anytime, when its usefulness has been outlived. It’s turning into a piece of paper that is only tied to a sea of debt, and will soon be rejected for something of more meaningful value. The expanding toll concept is just another crisis kneejerk tax ‘n grab cash scheme.

  9. “…The federal highways have never been free. They have been paid for through the federal gasoline tax…”

    But as a result of the insipid infection in our culture called conservatism, we’re not allowed to tax ourselves any longer to pay for the things we, as citizens, want and need. Since the 1980’s our infrastructure has declined and is just one resulting symbol of what happens when the wealthy refuse to contribute to improving America. They want their taxes low, so they will personally benefit while ignoring or, more often, being openly antagonistic to supporting the greater needs of America and Americans. We now have a thought process that no taxes can ever be raised and to hell with the impact that has on people, infrastructure, the environment and the downward spiral of American life. We’ve apparently decided we want a second class rail system, second class healthcare, second class educational system, second class roads and bridges, etc. The fact is we pay far too little in taxes to support what used to be known and envied as a great nation.

    1. rcampbell – you are free at any time to donate more of your income to either the state or federal government. They will not refuse it. If you feel undertaxed, donate until you feel ‘right’ with the world.

  10. The bags of money still going to Afghanistan are disgusting and I hate it that once Kharzi is gone the Administration will get that damn agreement.

    As to Iraq, I don’t know how much is still being spent (wasted) there, but the costs in Iraq can hardly be blamed on Obama. That whole horrible waste of lives and treasure are owned by GWB and company.

  11. Darren, I don’t think you realize how simple it is to add tolls to the highways. It’s just a matter of putting up high-speed RFID scanners and cameras. Then you feed the collected data into a billing system and watch the money roll in. No toll booths or tool booth attendants required.

    I’m surprised Obama hasn’t issued an executive order requiring all cars sold in the US to have a RFID tag manufactured into the vehicle. And for you NSA fans, if every car uses an RFID tag to record usage on the “freeways”, how much easier will it be for the government to track a person’s movements? Potential privacy issues here.

  12. The federal highways have never been free. They have been paid for through the federal gasoline tax, although a significant portion of that money has been diverted to other uses (as opposed to maintaining and extending the interstate highway system).

    Obama’s proposal is yet another tax, and not surprisingly, a sizable portion of the new taxes will probably get diverted to uses other than the interstate highways.

  13. Tolls are a terrible idea and worse, they are a regressive tax. I think the underlying problem is that Grover Norquist has been completely successful in his goal to persuade American citizens that taxes are an abomination. Citizens have swallowed it hook line and sinker. And woe to any politician or administration that finds we have to fix things and that that takes revenue.

    Now we embark on the next lesson – that taxes must be spent on our crumbling infrastructure. You gotta pay for nice things.

    And I am very sorry that the Obama administration is moving toward the reversal of the original policy. But I look forward to the House Republicans voicing their vigorous opposition to tolls for our federal highway system. (sarcasm) Let’s just hope that their remedy is not the reduction of fuel efficiency standards.

  14. If we have more toll roads, what happens to the huge amounts the taxpayer now pays for freeways/highways? I have a feeling we’ll be paying double taxes. Besides, I’ve read that eastern tolls can cost as much as $20.00+ one way–example: bridges from NJ to NY. That’s highway robbery in the truest sense of the phrase!
    The only toll I use in California is the one from Green Valley to Irvine, because it saves me time and has less traffic–cost about $5.00.

  15. With regard to the Virgina tax refund debit card, it was only to pander to big businesses. I don’t see it costing more than a dollar or two to process, print checks & statements, then mail them out if no direct deposit was noted. Instead the commonwealth gave millions of dollars in float to one particular bank which of course they can use toward their fractional reserve and make loans out in multiples to one of revenue, and heck make it as fractional reserve for credit card loans and really rake it in.

    All this because ,allegedly, it is too expensive for the commonwealth to handle. I wonder if push came to shove a person could refuse the debit card as it is not legal tender payment. The debit card does not have universal acceptance as U.S. Currency is. Someone ought to fight this in court and see how this goes.

  16. Addiing the ability to collect tolls on the interstates will require a great capital investiment that will take years to pay before the revenue of the tolls become realized. Furthermore, once tolls are allowed the money-grab by the states will never end, and the fares will increase despite all the promises to keep it low by the various legislatures, or worse yet state departments of transportation.

    Avoid the interstate, clog up the US Highways and County Roads instead. This plan is unsound, which is why it probably will be implemented.

  17. This looks like a ‘kickback’ scheme that was entered into by the local officials who were persuaded that this would make everyone’s life ‘easier’ and make those receiving the cards spend the money in a local business.(Walmart?)

  18. I set my Garmin up to avoid toll roads but did not realize that on my last vacation it was the only Interstate Highway to get where I was going. Still, my Garmin took me through the lovely countryside with some small town and two-lane roads. The only major problem was when we hit a washed out bridge. After backing up and getting directions from a native, we were able to get on a dirt road that Garmin recognized that got us past the washed out bridge and to our destination. I did take the toll road on the way back.

  19. Whenever I look up a route on Google Maps, I always look for toll roads so I can plan my trip to avoid them. Not a matter of money, but principle. I won’t take a toll road. One of the side benefits is that I get to see some interesting byways, people, sights, historical places and even stumbled on a parade or two. I have great photos I would never have gotten had I taken a toll road.

  20. As to the point of the post, the entire idea of the Federal Highway system, as opposed to state roads, was to NOT have tolls. This is simply another regressive tax to allow the government to continue to spend unchecked.

    Interesting you would mention aid to Israel, which is not a rich country, despite your assertion otherwise, but not aid to actually wealthy nations such as Saudi Arabia. Or worse, massive aid to nations which are unquestionably our enemy such as Pakistan.
    I’ve noticed a significant misunderstanding about both our relationship with Israel, and the situation there on your blog professor.
    Besides the fact that a large measure of our aid to Israel is in the form of loan guarantees, funds which they are required to spend IN THE US, thereby aiding our economy, they provide us with things that no other nation does, including much of our drone technology, targeting systems in our jets, training on missile defense, etc.

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