Free Markets, Free People

gas taxes

Trumka: Raise gas taxes to create jobs

If ever there was an example of the complete cluelessness much of the left commonly displays when it comes to economic matters, the AFL-CIO’s (and Obama advisor) Richard Trumka provides it:

What’s the best way to get Americans back to work?

Raise taxes, according to AFL-CIO President Richard Trumka. Specifically, he wants to raise the federal gas tax as a means to fund infrastructure spending. "We need a dedicated source of revenue to create infrastructure in this country," he tells Aaron Task in the accompanying clip.

"We need to create jobs. The best way to do that is through infrastructure development." Simply maintaining the existing infrastructure in this country will cost $2.2 trillion over five years, according to the American Society of Civil Engineers. That doesn’t include Obama’s objective of high-speed rails and green energy projects.

So, to sum up, raise one of the most regressive taxes there is (it hits the poor the hardest at the gas pump because they end up having to pay a larger portion of their disposable income for gasoline) and declare this will help "create jobs".

What it will actually do, if that were to occur, is create more union jobs. And if the poor have to cut back on food or shelter, well, you know, a few eggs have to be cracked to make an omelet.   The key to economic recovery, per Trumka, is government created jobs with money taken from taxpayers who just might have a much different priority for it.  It calls for another “new revenue stream”.  And he has no qualms at all laying claim to your dollars to fund his nonsense.

Trumka didn’t say specifically how much he would raise the gas tax, but mentioned he’s shown the President a $256 billion plan to improve infrastructure.  If every billion spent on infrastructure creates 35,000 jobs, as he claims, this package would create close to 9 million jobs over the next five years. 

The idea would also improve America’s fiscal and competitive future, says Trumka. "There’s also a downstream effect, you put people back to work, they pay taxes, they don’t use services, they’re contributing, other jobs are created along the way as well," he explains.

Fantasy.  A) it is, as usual, the left’s answer to everything – tax and spend.  Someone tell Mr. Trumka that it is precisely that mindset that the majority of Americans have rejected.   B) it assumes something not in evidence.  We just spent over $800 billion on “infrastructure” – look around you, did you see the unemployment rate dip significantly or go up?  C) after the stimulus was spent there has apparently been no down-stream effect for jobs, service use is up and tax revenue is down.

If Trumka’s solution had any credibility, unemployment would be down below 8% (that was the promise, remember – spend the money on infrastructure and see jobs created) and we’d be riding the recovery train.  We have a million little signs up everywhere in America right now touting infrastructure projects – and the unemployment rate?

In fact, what Trumka is doing is asking for more to be spent on a plan that has already failed miserably and expecting different results.  Isn’t that the definition of “insanity”?

That’s precisely what this plan is – insane.  Government has wasted trillions on nonsense like this.  The solution to this isn’t government creating jobs.  It is private industry doing so.  That requires low taxes and a stable business atmosphere where government hasn’t declared war on business and corporations.  That requires less government, not more – something the Richard Trumkas and Barack Obamas of the world can’t quite seem to get through their heads.  In their world, government is always the answer.   Unfortunately, we’re living in their world right now.

Happy with it?

Are you better off now than you were 4 years ago?

~McQ

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