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Politics : View from the Center and Left
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To: Steve Lokness who wrote (255238)7/7/2014 4:57:27 PM
From: research1234  Read Replies (1) of 542013
 
Collecting gasoline taxes and then making those tax expenditures available to states to use for infrastructure projects will create two net stimulative effects:

1. Most infrastructure projects are funded using a combination of federal, state, and local funds as well as municipal bonds. The borrowing portion is stimulative. Without federal money, the projects would either be much smaller or not exist at all, and the bond-funded portion would no doubt be much smaller as well, so the stimulative effect of more federal money is more than just the bond-funded portion of projects.

2. Better infrastructure will lead to better transportation, leading to higher profits for companies who rely on infrastructure to move their products. Higher profits will find their way back into the economy.
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