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By
Jason Fincke, Executive Director
Builders Guild of Western Pennsylvania, Inc.
It was either Rodney Dangerfield or the 15th Century Priest Desiderius Erasmus who said, “Women--can’t live with them, can’t live without them.” Regardless of who gets credit for the quote, the same could be said about taxes.
Central among President Barack Obama’s plans to reenergize the economy has been a reinvestment in the nation’s infrastructure. Much of the President’s Economic Stimulus Initiative, funded through our tax dollars, has been directed toward our nation’s bridges and highway systems. It’s an investment that has been deferred for far too long, not just in our nation’s roadways, but in all parts of our infrastructure.
Water and sewer lines, air and rail transportation networks, prisons, dams and other essential facilities are a part of our social fabric that we often take for granted. They enable the provision of services that set aside our quality of life from every other country throughout the world.
The investment that we have chosen to make in our infrastructure, however, has come at a price. For example, by choosing to invest heavily in our roadway systems, we have made automobile travel a costly and essential part of our lives. With our vast network of roads and highways have come suburban sprawl, traffic congestion, pollution, and other outcomes, each of which has financial implications, not the least of which is the need to fund the maintenance and expansion of our transportation systems. This comes at great expense and significant tax dollars.
Everyone wants smooth roads and safe bridges that enable them to get from point A to point B as quick as possible. The problem is not everyone is willing to pay for them. Even now, Congress can not agree on how and how much to fund the next Surface Transportation Act, which authorizes funding for our nation’s transportation system, including public transportation.
The delay in passing this critical piece of legislation jeopardizes much needed repairs and maintenance on thousands of miles of roads and bridges in Pennsylvania alone. The infrastructure that is needed to maintain this country’s lifestyle requires an investment that the country has not been prepared to make. The problem was recently compounded by a decision from Washington to not allow for the tolling of Interstate 80 that was expected to generate more than $450 million for transportation purposes in Pennsylvania. But while the immediate outlook is grim for the state’s roads and mass transit systems, some signs are encouraging.
An investment in rail transportation, particularly high speed rail, to supplement air transportation is on the agenda, as are investments in our water and sewer systems, airports, schools and prisons. The problem, of course, is that the necessary investment is beyond current taxing levels and will undoubtedly be subject of great debate.
The numbers are staggering. To significantly upgrade our nation’s high speed rail system could take approximately $100 billion over the next 25 years. An EPA study has estimated that $335 billion will be needed to maintain the nation’s tap water systems over the next few decades. Approximately $1 trillion is estimated to be needed by 2015 to maintain our highway and transit systems. The country’s prison system is grossly under funded as are many other facilities that comprise our nation’s infrastructure.
The funds that are currently being made available as a result of the American Recovery and Reinvestment Act are helpful but nowhere near sufficient to meet the need. More, much more, will be necessary.
Recently, Governor Rendell announced an investment of $13.8 million in federal and state funds to help upgrade and enhance safety at 32 Pennsylvania airports. In March, the state’s Department of General Services once again began the process to expand two of four state correction institutions that will cost approximately $600 million. As for federal transportation funding, whatever investment is made in our nation’s infrastructure will be good news for the construction industry. In some capacity, virtually all building trade unions will benefit, some more than others. But whether it’s patching a pothole-ridden road or building a new water treatment plant, the jobs that are created will largely be the result of taxes paid by every working American.
Studies have shown that some 22,000 jobs are saved or created for every $1 million invested in the infrastructure. Nearly 8,000 of those jobs are for construction related work, with the balance for suppliers and others.
No one likes paying taxes, just look at the growing media attention being given to the so-called Tea Party, but everyone wants the benefits they provide. You may want to think about this the next time you are asked to voice an opinion about paying taxes.
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Untitled Document
A R C H I V E S
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Worker Misclassification Creates an Unlevel Playing Field
A Feeling of Ownership
Opportunities knocking, but for whom?
CONSOL Energy Center
The Builders Guild: Ten Years and Growing
On Behalf Of All Of Us
Hurdles Growing Higher For Area Developers
International Study Confirms Value of Union Apprenticeship and Job Training Programs
Help wanted in the building trades
Skilled, professional workforce lures developers

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