User benefits, if taxes become less of a proxy, transportation consumption due to more efficient cars and energy prices, then prioritize highway money for the most urgent needs and give more power to the states and cities which can use told them that fuel level use. Guest given the fact that there has not been much happening here in washington, a lot of states, 14 states in the last four years race on gas taxes. Almost all of those work and trolled by republicans. Utah raised 5 cents cents a gallon so they could fix up their roads, in the absence of any kind of major transportation bill, wyoming raise their own gas tax, all republican state. Is it easy . Of course not. Of course not. Its hard for politicians to raise the tax. The one think they know is that when they do that, the constituents they represent realize that potholes are going to be filled, roads are going to be fixed, bridges are going to be fixed, and people see their friends and neighbor doing the work. The money does not stay in washington. It does not go in some politicians pocket, he goes back to the states. People in the states see progress. That is the recent there is not that much heartburn about raising the gas tax. Fourteen states have done it, many very conservative bid states. Host you served as republican from illinois, you served as transportation secretary for the obama administration. Why is the Transportation Department, wise that needed some republicans, wall street journal would say get the federal government out of it, it should go to the state. Why do you say the Transportation Department. Guest this idea of evolution which you are talking about, which just just give the money back to the states, we would not have a National Program. We would not have an interstate system. When eisenhower signed signed the interstate bill there are governors back then that said we are not going to have an interstate running through our state. Here we are 50 years later, within the state system. Why . Because we had National Priorities. Because we set that is a priority. There is not enough money in the states to fix up the bridges that need to be fixed up. These bridge projects are very expensive. In the neighborhood of 50 100 million. You have to have a National Program that allows for big dollars, big amounts of dollars to be allocated to the states. States left to their own simply would not have their own resources to do it. They would not. We would not have the National Priorities for safety, safe roads, safe bridges, standards that may be some states simply would not adopt. Host what about competitiveness with other countries . Spee2 we are way behind now. Anyone who now. Anyone who has been to china, asia, south america knows that highspeed rail, new highways, new roads, every time you go to china there is a new row, new bridge, new highspeed railway. Their National Government set that as there National Government set that as a priority. You build it, they will calm. You build it they build economic corridors. People go go to work building these kind of infrastructures. We are being so outcompeted by everyplace else in the world, and that is why companies are thinking about moving to those some places in the world because they have good infrastructure. They have good roads, good bridges, to get their people back and forth to work. To develop economic opportunities. You build infrastructure, you build economic opportunity. Look at all the jobs that have been created along the interstate system over 50 years. These are all all small businesses. They all employ people. Thats what a role, a real line, a quarter does. Infrastructure is a winwin for america. For the people who do the work, for the people who benefit from the road, for the jobs being created once the road or rail line is in place. Again, this is a nobrainer. If you if you want to jumpstart the economy, the largest segment of on a planet in america right now is in the building area. It is in the building trade. These are the people out of work because there is nothing happening. There is no no transportation bill. The Highway Trust Fund is broke. So nothing is happening, a lot of people are out of work that ordinarily, in this right here in july, in the middle of construction season theres not much happening as we dont have a role program, we dont have a Highway Program and the trust fund is broke. Gas taxes have not been raised for 20 years. You cannot think of another thing in america, a dozen eggs, gallon of milk, and automobile, you name it, they have all gone, you name it, they have all gone up over 20 years except the gas tax. Caller good morning. I like your name. The only problem we have out here with the public is i have written my congressman and my senator, i do not believe that when you raise the gas tax at the federal level, you know why a big project. That is just one of hundreds. It first came in at 2,000,000,000 dollars, the dollars, the thing up in massachusetts, that hole in the ground. It went out with cost over run at 22,000,000,000. The money was siphoned off, as siphoned off, is nothing but corruption, kennedy was alive at the time, he directed that federal money and set everybody else pays in guest tax, new mexico to iowa back and forth again. When they opened it up the ceiling fell in because these garbage up there. Remember that . In the public, we dont trust the public government anymore. I was drafted during vietnam, as a policeman for 25 years and retired. I could tell you this. We have the most corrupt government and the whole entire world right now, until you straighten it out and fly straight, thats why people dont trust anymore. Guest first of all, thank you for your service as a 25 year policeman, sign policeman, then easy job. We appreciate the work you do. I would say dont agree with you. I i dont think our government is corrupt. I think the big gig was a huge crossover run and it is inexcusable that project cost so much money. Im proud of the work that we did at dot while i was secretary. We funded a lot a project that kept a close eye on them, make sure they were done correctly. We worked with mayors, governors all over the country who are people that really want to get things done and really innovate in infrastructure. I take your point, that project was a huge cost overrun. Host in florida, jim, a republican. Caller yes, the previous caller stole my thunder, i was also going to raise the issue of the big dig. He an illinois politician went to prison for corruption so we have to be careful of what he says, hes a rhino, republicans used to stand for conservative fiscal policy, this is the old concept of just spend and spend our way out of economic problems. We we have an 18 trilliondollar debt. 18,000,000,000,000, your, your grandchildrens grandchildren could not pay that thing off. Host lets get a response. Guest while i served in congress for 14 years im proud to say that as a member of the Transportation Committee we pass to sixyear bills and fully funded them. During that time speaker gingrich was in the majority, as part of the majority party, we passed three balanced budgets. Bill clinton. Bill clinton was in the white house. So the idea that you cant do both is not quite accurate. We did both, we passed major legislation, very legislation, very comprehensive transportation bills, balance the budget at the same time. People in washington can do those things, i think there are people who want to do that. Host how was it funded then when you pass those bills . How has it been funded something . Spee2 the two bills that we passed during the time that i was in congress were funded primarily by the gas tax. It had been raised in 1993, prior to the time that i came. I was elected in 1994. Under elected in 1994. Under president clintons First Administration the gas tax was raised 18 cents per gallon. The truth is, during president reagans administration, between his first and second term they raise the gas tax 5 cents per gallon and passed a fiveyear bill. Reagan bill. Reagan was a conservative fellow, i dont think people would accuse him of being a rhino. He is the need for the resources of andhats what we need today. We need that kind of vision and leadership to say that the Highway Trust Fund is broke, theres no money there. It has done a good job in helping build an interstate system. In great system in a country which is crumblin host how do you pay for this highway funds when, if you see even more fuel efficiency and cars and less consumption . Guest there are number of other things that can come into play. A lot of states have raised their own gas taxes, 14 last year and some very conservative states. A lot of states are doing tolling. Im from illinois, i, i still have a home in illinois, we have done a lot of tolling around Ohare Airport in illinois. In northern virginia, tolling has come into play in order to build roads. Tolling is one way, public, private partnerships which will deliver people from Downtown Washington out to bellas airport when it is completed. That was a public, private partnership. A partnership. A billiondollar project that totally funded by the government. So you have public, private partnership, you have tolling, and there are people from around the world that want to invest in infrastructure too. You have have Investment Bankers that are looking at infrastructure as ways to invest two. We dont say its all through the gas tax because you have to have other resources to. Host okay in michigan, john a democrat. Caller good morning. I drove over the road 22 years, a Truck Company of never had an accident, never a ticket. Guest congratulations. Caller the only way to do it is raise the gas tax because we were reporting hub miles on our fuel sheet and what you guys in washington were getting, the Truck Company was paying you mile maker. So theres stuffing about 22 in their pocket. So the easiest way is to go ahead and raise the fuel tax, most people dont realize, a couple two or 3 cents at the pump and we can cut out worrying about all of this. Im retired now. Host is that tree that two or 3 cents would do the trick . Spee2 not really. We need a need a big chunk of money right now. The infrastructure in america is in really bad shape. Theres a list at the dot a list in bad repair that need funding. These are very costly projects as i mentioned. Arlington cemetery is in the state of bad repair, it costs a lot of money to fix that bridge alone. We know the interstate system is now 50 years old, and needs to be fixed up. There are roads all over america that need repair. Were talking billions of dollars. 10 cents per per gallon, i say 10 cents per gallon and index it. At the gas tax was indexed in 1993 we will be having this problem. Index it to the cost of living. Gas of living. Gas prices are low right now. In some places in the country there below 3 per gallon. Now might be a very good time to raise the gas tax. Host okay, do you do you see that happening in this congress . Guest i dont. Its very difficult difficult for politicians to raise taxes. They dont want to do it. Host san diego, an independent. Caller good morning, thank you for taking my call. Coming from americas finest city, ive have been in the city for 42 years, i own my own business for 25 of those years. I traveled as an outside salesman all those years. I have to tell you, i think san diego has done a terrific job with their roads. Maybe there is one exception i would complain complain about and that is the toll road from san diego to chula vista paper by company out of australia. I had one of those easy passes and i use it frequently. I must say that i am probably one half of 1 of the people that use that row. The the road was so bad and so underused that it had to be taken over by the state. I dont know know how much money we had to pay for that. Secondly, im going going to ask for a few things and then hang up. If there are 100,000,000 people in the United States that arent government subsidies of some kind, how is any increase in gas tax going to help those people . I noticed how you kinda brushed off the big gay get as a big mistake. That was an enormous mistake. That set the Highway Trust Fund back years. Host will take those two points. If you raise the gas tax what that does to lower income americans were already struggling. They now have to pay more. Guest if we raise the gas tax, we have the ability to put together a comprehensive bill, there are a lot of people in america that use mass transit, buses, light rail, think of the people in washington d. C. That use the metro system. People in chicago views the system. Its true all over america. If you have a Good Transportation program it is not just the roads and bridges, it is for transit and for people who frankly may be do not want to own an automobile or cannot afford one. But they still need to get to work and get to the dr. , get their kids to school and they need mass transit. That that is part of a comprehensive transportation program. You can have that in less you have the resources. We do not have the resources right now. That is why the senate is struggling. They put together a sixyear bill but only funded it for three years because the resources are not there. The Highway Trust Fund is broke. We need to replenish it. Host what you make of the senate last night attaching reauthorization of the Export Import Bank onto the highway bill. Guest im a big supporter of the Export Import Bank. Im not elected to anything but if i were serving i would certainly be supporting that. It was a commitment that the Senate Majority leader made to people in the senate who support the Export Import Bank, way to revise it. Frankly, the Export Import Bank is lane dormant right now because they ran out of its authorization. So the Senate Majority leader said there would be a vote on it, obviously there is support for it in the senate. It is a way to get that organization up and running again. Host what happens at the end of the week, the house says theyre not going to take the sixyear bill, the senate says theyre going to pass it before the resource. They pass 34 shortterm passes. But they dont come together before the august recess and funding runs out. How does Transportation Department respond . Guest i dont think it will happen. As a former staffer for 17 years i think there is a lot of discussion going on between speaker staff and majority leader staff about putting together an extension similar to what the house pass. I dont know if it will be through the end of year or through the end of fiscal year which would be the end of september. Before everybody leaves on thursday therell be some kind of extension. The house is not going to pass the senate bill, even if the Senate Passes it today, theres not enough time for that. It is taken the senate almost two weeks to passes bill, it was passed out of the committee several months ago. These things take time. I think there will be an extension. I think that people are probably on the phone as we speak figuring out how to do it. I think speaker boehner, and majority leader will be on the phone with one another today figuring out what the endgame will be. By thursday therell be an extension. We will have a transportation. Host a five month extension recently but last night they put together a three month extension which they hope the house will take up. Guest i think theres some agreement on that. Host an independent from florida. Caller good morning. I am retired a couple of years now, the telecommunications engineer. You are correct as far as how everything is falling apart with infrastructure. However, what i can say about that is the department of transportation has basically failed because if they had not filled then all of these things would not be in such disarray, in such horrible condition. We would not be out of money if there is a choochoo trust fund that was not rated in order to buy loans. We know the american taxpayer pretty much get screw. I dont think anybody should get any money until they fix the departments and fire everybody, because when i worked if you didnt take care business you didnt have a job. It should be that way with the government and every one else. Host okay, do you want to respond to that. Guest when i served in congress we pass to sixyear bills. There were big bills, they were bis that put people to work, kept our infrastructure in a state of good repair. I think that is what we need to get back to. Host using text, you are are part of the obama administration, please explain where all this endless money promising to fix the roads went . Guest we got 48,000,000 dollars at the dot as part of the 870 billion. Within two years we spent 26 billion on roads and bridges, a billion to implement highspeed rail, 8 billion for transit, 1,000,000,000 to to Fund Projects in cities, 1 billion for airports. That money was spent in two years. Host not enough . Guest of course not. I i think we should bed 480 billion, but it ended up being 48 billion. No earmarks, no sweetheart deals. We did it the right way. We put a lot of people to work for two years and funded a lot of projects. Host another transportation story today, more fees propel airlines. Profit margins for addons could be as high as 80 . This is how airlines are making their prophet, by charging for these addons. Guest i think its more than that, i think the energy cost that comes in that has been with the airline industry. One of the biggest costs is the jet fuel they buy. As these costs have come down, it has been a tremendous boom for the airline industry. Though obviously, charging for pillow, meal, better seat is a great source of irritation. These are private companies, they have a bottom line, they have a board of directors to report to and they figure out ways to make money. The main reason theyre doing so well financially is because their energy costs have come down so dramatically. Gas prices has fallen. The price of a a barrel of oil has gone down. H