WTF Did You Just Say..?
US Congress seen paving way for private toll roads
Thu Jun 30, 2005 9:33 AM ET
By Daniel Sorid
SAN FRANCISCO, June 30 (Reuters) - The next road you travel -- and pay a toll to use -- could be privately owned.
Looking for ways to finance highway projects without hitting the public trough, the U.S. Congress appears set to pass a proposal to encourage private ownership of new toll roads.
The provision, part of the highway spending bill now being hammered out by a Senate and House conference committee, would allow private companies to raise up to $15 billion for highway projects with bonds that are exempt from federal income taxes.
While the proposal has broad support in Washington and the business community, the idea of private highways has incited grassroots opposition in some states, with some saying the government -- not a profit-seeking company -- is the proper owner of the public's roads.
Toll road owners such as Spain's Cintra (CCIT.MC: Quote, Profile, Research) and Australia's Macquarie Infrastructure Group (MIG.AX: Quote, Profile, Research) stand to benefit from the move to private infrastructure bonds, since their tax-exempt status would keep interest rates and funding costs low.
The move would also bring lucrative fees to Wall Street banks and others for underwriting and trading tax-exempt debt.
"The time has come for this," Sen. Jim Talent, a Missouri Republican who co-sponsored the proposal, said in a telephone interview. "I think we have an excellent chance of the $15 billion bond issue coming out of conference."
Continues..Link in Headline.
---And with Oil prices through the roof, VERY soon ONLY the wealthy will be able to afford any kind of movement around this nation. And when commerce is slowwwed wayyy down. WE are sitting ducks for Homeland Insecurity.....---
Thu Jun 30, 2005 9:33 AM ET
By Daniel Sorid
SAN FRANCISCO, June 30 (Reuters) - The next road you travel -- and pay a toll to use -- could be privately owned.
Looking for ways to finance highway projects without hitting the public trough, the U.S. Congress appears set to pass a proposal to encourage private ownership of new toll roads.
The provision, part of the highway spending bill now being hammered out by a Senate and House conference committee, would allow private companies to raise up to $15 billion for highway projects with bonds that are exempt from federal income taxes.
While the proposal has broad support in Washington and the business community, the idea of private highways has incited grassroots opposition in some states, with some saying the government -- not a profit-seeking company -- is the proper owner of the public's roads.
Toll road owners such as Spain's Cintra (CCIT.MC: Quote, Profile, Research) and Australia's Macquarie Infrastructure Group (MIG.AX: Quote, Profile, Research) stand to benefit from the move to private infrastructure bonds, since their tax-exempt status would keep interest rates and funding costs low.
The move would also bring lucrative fees to Wall Street banks and others for underwriting and trading tax-exempt debt.
"The time has come for this," Sen. Jim Talent, a Missouri Republican who co-sponsored the proposal, said in a telephone interview. "I think we have an excellent chance of the $15 billion bond issue coming out of conference."
Continues..Link in Headline.
---And with Oil prices through the roof, VERY soon ONLY the wealthy will be able to afford any kind of movement around this nation. And when commerce is slowwwed wayyy down. WE are sitting ducks for Homeland Insecurity.....---
posted by Christy at 10:22 AM
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