Sprawl

Despite the anti-tax rhetoric of this round of elections, there's been a little flurry of support for raising the gas tax lately. Two senators just proposed bumping it by 25 cents to replenish the highway trust fund. And the co-chairs of the National Commission on Fiscal Responsibility and Reform included a gas tax hike in its proposal for reducing the deficit by $3.8 trillion. Their proposal [PDF] is simple.

We're keeping the news coming on the governor’s races we're following most closely. Check out our previous coverage of Wisconsin, Ohio, California, Texas, Maryland, Colorado, and Tennessee. This one could be the most important yet.

Imagine two drivers leaving downtown to head home. Each of them sits in traffic for the first ten miles of the commute but at that point, their paths diverge. The first one has reached home. The second has another twenty miles to drive, though luckily for her, the roads are clear and congestion doesn't slow her down. Who's got a better commute?

If you want to get a sense of how devastating sprawl has been to the urban areas of northeast Ohio, head over to Woodlawn Avenue in East Cleveland. Between the rows of boarded up buildings, a house collapses onto itself. Graffiti pays homage to dead loved ones — “R.I.P. Fife.” Nearby, stuffed animals have been stapled to a telephone pole in a memorial, presumably, to a dead child.

Last week, the Livable Communities Act cleared the Senate Banking Committee, a milestone for legislation that would fund local efforts to plan for growth while curbing sprawl. But the 12-10 party line vote raised the prospect that the bill might also encounter unified Republican opposition in the full Senate, where the threat of a filibuster has become the norm.

With financial reform nearly complete, the Senate Banking Committee turned its attention today to one of Senator Chris Dodd's (D-CT) next priorities, the Livable Communities Act. Local government came out strong for the initiative to promote sustainable and integrated regional planning, with representatives of the nation's cities, towns, counties, and regional planning organizations testifying in favor. Among committee members, concerns persisted about whether the bill would disadvantage rural areas. 

The home-building industry scored a big win last year when Congress voted to double the tax credit for new home buyers and extend the break until next month. But that's not the only legislative move that's leaving smiles on home builders' faces.

The Congress for the New Urbanism (CNU), an advocacy group working to reform local development practices, is seizing on House Financial Services Committee Chairman Barney Frank's (D-MA) recent call for a new system of housing finance to replace government-controlled Fannie Mae and Freddie Mac.

Back in the days of "cash for clunkers," which saw the Obama administration send nearly $3 billion in taxpayer-funded rebates to boost the sagging auto industry, our Ryan Avent and several other economics wonks pointed out an inconvenient fact: Many participants in the program would have bought cars anyway, and the rebates only pulled their purchases forward in time.