Infrastructure improvements must not bury future generations with new debt.
The debt issue is especially important in consideration of a government that is happy with unreformed entitlements, while simultaneously adding hundreds of billions in new annual spending.
Still, as the Washington Examiner’s Josh Siegel reports today, conservative Republicans are increasingly open to a gas tax towards generating revenue for infrastructure improvements. Siegel quotes Rep. Thomas Massie, R-Ky., as stating, “I would need a lot of guarantees about how the money is going to be spent before [voting] for a gas tax increase, there is no way I would say I am openly for a gas tax increase. I am not saying never. I am not drawing a red line.”
Massie’s concerns are justified. After all, absent corollary compromises from Democrats and assurances that the new revenue would be spent on necessary improvements, a gas tax would simply add government power absent productive investment. Fortunately, there is a solution. In return for a gas tax hike, the GOP should make three demands.
First, that any revenue is spent on critical infrastructure projects such as high-use interstate highways and expansion of hub airports — not bridges to nowhere, and not bike trails.
Second, that two key pieces of legislation are repealed or suspended in return for the gas tax increase.
Enter the Davis-Bacon Act of 1931.
This act pretends to serve hard work and local communities but requires contractors to pay “locally-prevailing wages” on all authorized projects. This means that private contractors cannot offer a cheaper deal to the government and that inefficient practices and union payoffs are forced onto taxpayer backs. The depression era monstrosity blows billions of dollars each year (a 2011 Heritage Foundation study assessed the figure at $10.9 billion).
The second legislative concern?
Well, as the Department of Labor notes in its hilariously pro-union explainer, that’s the Contract Works Hours and Safety Standards Act. This gem requires payment of 1.5 times standard pay for those working more than 40 hours a week on government contracts. Of course, in that many companies could find workers happy to work 50 or 60 hours a week at standard rates, it’s another folly at taxpayer expense.
In return for a gas tax, relevant sections of both acts should be repealed.
The real beauty of the GOP calling for these caveats is the public relations component of that pledge. Because with this approach, the GOP would show that it is willing to compromise on a long-held conservative “no deal” issue of tax increases, in return for demands that are both realistic – let’s spend money on infrastructure projects we really need rather than on pork we don’t — and economically fair.
“Why should taxpayers continue to pay more for the same project?” Republicans could say.
“Why should we heap more deficit spending onto millennials when we can take some responsibility in the moment?” they might question.
“Why should unions benefit at your expense?” Trump could ask.
The Democrats would struggle to counter this messaging for one simple reason: it is common sense.
