Taxation - Republican Style

Many years ago, when I was a child, the freeway now called I-30 was built between Dallas and Fort Worth. But it was not a freeway when it was built -- it was a toll road. Tolls were collected until the money spent to build it was repaid and then the toll booths were removed and it became a freeway. Everyone recognized that those tolls that were collected for a few years were nothing more than a tax levied on those using the road -- a tax designated for a particular purpose.

That road was built by state Democrats, and they kept their word by ceasing to collect the tax once the road's costs had been recovered. But Republicans rule this state now, and they do things a little differently. They still build toll roads, but the tax levied on those who use those toll roads don't go to the state anymore. They go to a private corporation -- a private foreign corporation -- which uses those taxes to fatten their own bank accounts.

A few years ago, Governor Perry wanted to build a huge tollway running the north-south length of Texas. The tollway would be built and operated by a Spanish company (Cintra), who would collect tolls for at least 50 years -- while the state would be responsible for repairs and even paying Cintra if collections fell below expected levels. It was a ridiculous idea and it was stopped by the citizens of Texas.

At the time I had hoped that such ridiculous schemes were a thing of the past. Not so. The Republicans were able to get a tollway approved in Tarrant County (Fort Worth), and while it was needed, it certainly doesn't look like a good deal for taxpayers. The idea was originally that the Spanish company would build the road with their own funds and then collect the tolls until about 2061 to turn their investment into a profit. But it didn't quite work out that way.

It seems that the state still supplied $573 million dollars (while Cintra put in $427 million of its own money, and got about $400 million in federally-backed bonds and another $650 million from a federal government loan). Once the road is built Cintra will collect from $1.20 to $6.50 in tolls for the next 50 years, while the state and county maintains and repairs the road. This was nothing more than a 50 year tax which will be paid to a private foreign company instead of the state. It was a bad deal for Texans, but it was approved and nothing could be done to stop it.

Now it seems the idiots in the Republican-dominated state legislature wants to resume doing these kinds of deals -- giveaways of state roads for the enrichment of private corporations. They are considering bills that would approve other tollways -- where a private corporation would build and partially pay for a road in exchange for the right to collect tolls (taxes) for the next 50 years. Then once the road is worn out, it would revert back to the state to be rebuilt (or resold to the same or another corporation).

The state does need some new roadways, especially in the urban areas. But it would make a lot more sense to raise the gas tax and make these roads free for all drivers and still under state ownership. Our infrastructure should not be leased off to private corporations.

But the Republicans promised not to raise taxes, so they instead will lease out state roads and let private corporations charge exorbitant tolls. These are nothing more than taxes, but the Republicans can say they kept their word by calling them tolls and watching the money go into corporate coffers instead of the state's treasury.

Democrats might raise some state taxes, but they would not give state roads to private companies and would keep the money raised by those taxes for the benefit of the people of Texas. Republicans on the other hand, give away the roads and the taxes to corporations. Frankly, this makes no sense and I can't see how the people of Texas are benefitted (except for Republican legislators who will probably get large campaign donations).

Republicans might not call this taxation, but that's what it is. It's just a shame these taxes won't help most Texans. And state infrastructure should not be owned or controlled by private corporations. What will the Republicans do after they've sold the state to corporate interests -- start selling the people too?