Friday, January 27, 2012

Tax credit fever

This is coming a little late, but that slew of targeted tax credits proposed in the SOTU have Gene Sperling's fingerprints all over them. Back in the Clinton days, he pioneered the concept of using tax cuts/credits in *place* of appropriated spending for policy ends (think Enterprise Zones), to be consistent with the "no more big government" ethos.

Needless to say, JCT wasn't thrilled about that development. But "tax break" sure sells better these days than "government subsidy", even if both are *identical* in their impacts.

And so much for the dream of looping the city by bike trail.

http://cyclemoco.com/2012/01/metropolitan-branch-trail-removed-from-county-budget/

Boo. 

Connecting granola-heavy Takoma to downtown by bike trail seems like it should be more of a priority.  But hey, we've waited a decade already, what's another one?

In the meanwhile, easy access from the greyhound station to CUA, am I right?

The costs of not building trains

http://www.nytimes.com/roomfordebate/2012/01/26/does-california-need-high-speed-rail/california-can-spend-on-roads-or-on-rail

1) This seems to be the appropriate context in which to discuss building railroads--we're going to have to accommodate regional growth somehow, what are the alternatives? The airways are packed, and intercity roads will guarantee a traffic nightmare in the urban hubs.

2)Why does no one care about the wastefulness of rural highways? Why is no one complaining about the myriad of projects like our spending $1-2 billion on corridor H in WV, which connects Elkins to Winchester, VA (which will require high maintenance costs and not have any revenue stream)? Or the stupefying ICC, for that matter?

3)It's amazing how high a discount rate people apply to visible construction projects--infrastructure lasts for a LONG TIME given the costs. We're still using subway tunnels built in 1900 in Boston and New York. And the Big Dig--now that it's done, it's AWESOME. For all the complaining, in 40 years time, people won't be able to imagine life without it.

4) Also, people complaining about ballooning costs are bordering on dishonesty. Keeping costs down is easy--cities need to learn to put up with a train in their backyards if they want service. Modesto can't demand a center-city tunnel and then whine that they're going to have to pay more for it.