The $52 Billion Face Lifting

After a year of cantankerous argument about how to pay for it—bonds or taxes—the House of Representatives last week approved the biggest face lifting job in U.S. history. By a 388 to 19 vote it passed a road-building program calling for 13 years of federal and state spending amounting to nearly $52 billion. The project involves a 40,000-mile system of interstate highways that would connect 42 state capitals and link 90% of all cities with populations of 50,000 or more.

Under the Administration-backed bill, as sent to the Senate (where it faces smooth riding), the Federal Government would spend $37.6 billion and the states would chip in $14.2 billion. On the interstate system ($27.5 billion) the U.S. would pay 90%, the states 10%. For roads within states ($22.7 billion), costs would be split dollar for dollar between the states and the U.S. The Federal Government would meet the entire $1 billion construction cost for park, forest and other public-domain roads.

This time, the Administration had abandoned its position that the Federal costs should be financed by a bond issue. The House bill would pay a large part of the Federal share with regular appropriations. But it would also levy additional taxes of $14.8 billion on highway users during the life of the program. The present 2¢-per-gallon federal tax on gasoline would go up to 3¢. Tires would be taxed at 8¢ per lb., instead of 5¢. Excises on trucks, buses and trailers would be raised from 8% to 10%. The added tax cost to the average motorist: $6 to $9 per year.