ECONOMIC WEAKNESS SHOWING? :: With the Highway Trust Fund revenues down, highway repair cuts are expected. The Trust is funded by an 18 cents per gallon Fed tax and normally takes in about $50bil/yr. Now they expect to see only about $34bil in revenues. The official government explanation is that everyone is now buying fuel efficient cars to save the planet from Global Warming, The real story is …with gas now approaching $4/gal people are cutting back on driving. But it looks like the problem is actually a decline in discretionary spending due to a weaker economy. A year ago the Federal Highway Admin noted that in 2013, Americans are driving 112bil fewer miles than before. In general, even with a significant increase Federal Taxes, revenue are already down by 6% over last year (see Laffer Curve).
Posted on: Tue, 08 Jul 2014 02:40:13 +0000
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