Posted on 07/15/2009 5:07:54 AM PDT by reaganaut1
A bipartisan group of lawmakers is proposing to raise about $10 billion a year to fix aging water and sewer systems by taxing the biggest users.
The legislation, which has sparked significant opposition from industry, is expected to be unveiled Wednesday at a news conference on Capitol Hill.
The bill calls for a 0.15% tax on any corporation earning a profit of more than $4 million a year. Manufacturers of any water-based beverages, excluding alcohol, would see a four-cent tax per container. Soaps, detergents, toiletries, toilet tissue, water softeners and cooking oils would face a 3% tax on wholesale prices. Pharmaceuticals would be taxed at 0.5% of the wholesale price.
...
A spokeswoman for Mr. Blumenauer said the trust fund created under the bill would bring in about $10 billion a year.
Concerns about the safety and integrity of water systems is a perennial concern, particularly in older cities. Recent water-main breaks in New York City have disrupted traffic and transit.
A U.S. Chamber of Commerce representative, Janet Kavinoky, said: "Anytime there's a broad base of general taxes being used to fund infrastructure, the chamber is going to take a close look at how that affects our members."
The chamber also has concerns that a federal subsidy for infrastructure repair could send a signal to local municipalities that they don't need to charge the real cost of providing water.
...
Kevin Keane, senior vice president of the American Beverage Association, said beverage companies would almost certainly raise their prices to help compensate for the tax. This is just another example of "raising taxes on the middle class," Mr. Keane said. [It] would just add to the burden of taxpayers at a time they are already facing economic struggles," he said.
(Excerpt) Read more at online.wsj.com ...
Trust fund my ass. More like a Democrat Slush Fund.
I know exactly what you are talking about. I have a clothes dryer that is almost 30 years old. And it's STILL going strong.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.