August 18, 2007 by Tom Armstrong.

Read this short post to Robert Frank’s new book.

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August 18, 2007 by Tom Armstrong.

Opinion in today’s journal:

Some things in politics seem to be inevitable — and one of them is that any road or bridge tragedy will be followed by an argument to raise the gasoline tax. That’s what is now happening in the wake of the terrible Minnesota bridge collapse, but that state’s transportation and tax record shows precisely why voters are skeptical.

The gas tax pleas are coming from the usual suspects, in both Washington and St. Paul. James Oberstar, the Minnesota Democrat who runs the House Transportation and Infrastructure Committee, recently stood beside the wreckage and recommended an increase in the 18.4 cent a gallon federal gas tax, as a way to prevent future bridge collapses. His wing man, Alaska Republican and former Transportation Chairman Don Young, agrees whole-heartedly.

As it happens, these are the same men who played the lead role in the $286 billion 2005 federal highway bill. That’s the bill that diverted billions of dollars of gas tax money away from urgent road and bridge projects toward Member earmarks for bike paths, nature trails and inefficient urban transit systems.

In Minnesota, meanwhile, politicians and editorial writers imply that the bridge collapse is somehow the fault of those like GOP Governor Tim Pawlenty who believe in the “motto” of no new taxes, as a columnist for the Minneapolis Star Tribune put it. Mr. Pawlenty has been skewered for his veto earlier this year of a 7.5 cent a gallon gasoline tax increase (from 20 cents a gallon currently). Senator Amy Klobuchar, a Minnesota Democrat, has told her Gopher State constituents that if President Bush weren’t keeping us in Iraq, bridges wouldn’t be falling down.

Mr. Pawlenty has been wavering, first saying after the collapse that he was open to a tax increase but more recently showing more reluctance. Democrats in the Legislature are also demanding a sales tax hike to raise another $1.5 billion. What’s never explained is why the gas-tax revenue they already raise is so poorly spent.

Minnesota’s transportation auditors warned as long ago as 1990 that there was a “backlog of bridges that are classified as having structural deficiencies.” In 1999 engineers declared that cracks found in the bridge that collapsed were “a major concern.” Bike paths were deemed a higher priority by Congress, however, including its powerful Minnesota Representatives.

As recently as July 25, Mr. Oberstar sent out a press release boasting that he had “secured more than $12 million in funding” for his state in a recent federal transportation and housing bill. But $10 million of that was dedicated to a commuter rail line, $250,000 for the “Isanti Bike/Walk Trail,” $200,000 to bus services in Duluth, and $150,000 for the Mesabi Academy of Kidspeace in Buhl. None of it went for bridge repair.

…

We suspect most voters would indeed be willing to pay more for better roads and bridges, if they had any reason to believe that is where the money would be spent. But they have long experience with politicians promising them that new taxes will go to such projects only to see it diverted for parochial ends. A new Survey USA poll finds that 57% of Minnesotans oppose higher gas taxes. Mr. Pawlenty can follow their advice, or Mr. Oberstar’s. 

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August 18, 2007 by Tom Armstrong.

Today’s WSJ (subscription required) tells the story of Mr. McGoldrick, a Goldman trader who quit his job recently, because he felt underpaid at $70 million. Good read.

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