For all of you people that thought pump prices were going to stay steady, get ready for Trumps financial advisor. Yes it looks like small government will not be the case these four years but at least we will be in more financial trouble again.
Historically low interest rates present “the best time in the world” to borrow money to help fund President Donald Trump’s desire to spend $1 trillion to build the nation’s infrastructure, Richard LeFrak told CNBC on Wednesday.
As a libertarian I have to answer “who will build the roads?” to many times to count. Private companies do this and charge the government around 30% more because it is a government contract. All contractors do this it isn’t news to me but what really gets me is that people still support these actions.
Even with more Federal Reserve rates hikes expected this year, the cost of borrowing is “delicious,” said LeFrak, who along with Vornado’s Steven Roth is leading a White House council on fostering public-private partnerships to help pay for infrastruture projects.
The president’s budget proposal, unveiled last week, called for $200 billion in federal infrastructure funds with hopes to leverage $800 billion more in private and state government investments.
See how this works, the President asks for a little in his budget rallying you behind him and then says “well we hope to really spend four times as much.” We are 20 trillion dollars in debt. To put that into something that everyone can understand that is 200 tons of twenty dollar bills. So yea let’s borrow more.
When you look at gasoline taxes have driven up the price to an unreasonable price, even though it is only 47 dollars a barrel currently. A barrel is 50 gallons, think about that for a second. Granted it needs to be refined further, more taxes, driven to and from the plant to the gas station, more taxes, the employee who drives it, taxes, and then property tax and it never ends.
LeFrak said he would advocate an increase in the gas tax to help pay for infrastructure projects. Revenue from the levy goes to the Highway Trust Fund, which pays for road construction and mass transportation.
But he argued it wouldn’t really be an increase: “You’d be leveling it to where it would have been had they adjusted it for inflation in 1993.”
“If they did adjust it for inflation … it actually would produce tens of billions of dollars to annual revenue that would be reinvested,” he added. He acknowledged that a gas tax hike would hurt lower-income Americans more than the wealthy.
Wow someone finally said the magic words, more taxes would hurt lower income Americans. If people really cared about the poor wouldn’t they ask government to go the hell away? I can’t say much about what the president has done because I don’t pay enough attention to him and focus more on local, but at least his advisor said it.
Regulations and taxes are always put in place to protect or help you when in reality all they do is hurt the little guy. I hope this doesn’t go through and that our debt starts to go away but the reality is government will continue to do what it always does.