Yesterday morning I attended the Southwest California Legislative council meeting of the Temecula, Murrieta and Lake Elsinore Valley Chambers of Commerce to present a report on Prop 98.
Prior to my presentation we heard a report from Jolyn Murphy, District Director, Congressman Ken Calvert on H.R. 5102 the ON TIME Act which proposes imposing a fee of three-quarters of 1 percent of the value of each import or export shipment and capped at $500 per shipment. A shipment could be one or more cargo containers. It is estimated that the fee could raise $3 billion to $5 billion a year annually during the 10 year life span of the bill. This includes up to $500 million a year for projects in southern California. The Act establishes an 80% federal, 20% non-federal funding matching requirement for projects within each state.”
Jolyn told us that $300 billion dollars worth of goods come into Long Beach Port every year which taxes our system of roads as this cargo heads to the Inland Empire on its way to the east coast. Participants include all those communities within the 300 mile radius from the port of entry. The name assigned to the impacted roads is the National Trade Gateway Corridors.
There were several questions raised such as the administration fee which we are told is capped at two percent. Others questioned whether or not the fees would find their way back to California and the areas which are directly impacted. With our current economic struggle will this new fee impact our local economy? I asked Ms. Murphy if her office had been in contact with Assemblyman Chuck DeVore who was trying to introduce a plan to reduce the infrastructure and traffic burden in our area from these port cargo containers. She told me that due to interstate commerce laws any state legislative effort would be deemed unconstitutional.
While we have listened to the presidential candidates discussion of our “Free Trade” and Fair Trade Agreements to me this Act will be viewed as a new tariff on imported goods. Wikipedia states the following: “A tariff is a tax on goods upon importation. When a ship arrives in port a customs officer inspects the contents and charges a tax according to the tariff formula. Since the goods cannot be landed until the tax is paid, it is the easiest tax to collect, and the cost of collection is small.”
Juice readers. What’s your take on this pending Legislation?
Larry,
One would think that the trucks carrying the cargo already pay gas taxes to cover the use of roads. This sounds like another Repubican tax and spend scheme.
Unfortunately any such tax will be add on to the shipment cost and the consumer will pay for it as cost of product….. stupid.
Andy, is right – plus its another Republican “Job Killer”.
brother andy.
Let me begin by adding that this proposal is co-sponsored. From the other side of the aisle is Jesse Jackson, Jr D-ILL.
I wonder how those merchants in the heartland, including some unnamed big box warehouses would be able to get their imported Chinese goods if we didn’t have ports in LA and Long Beach with roads and rail to the Inland Empire and beyond?
In an article that I was given it reads that “Southern Californians should not pay the price so Midwesterneres can get a better deal on computers, tires and tennis shoes.”
What’s your take on that remark?
Larry, my take is that that last comment is political retoric to try to get another tax increse in. I must admit we do have a problem with trucks hogging the roads and that is one reason I don’t make it to the Limited Government Coalition meetings. But I think the future will be that these items will be shiped by rail as the price of oil continues to rise. Plus, I imagine that the Midwest will have new routs soon from that NAFTA highway thing.
Andy.
Thank you for acknowledging the “trucks hogging the roads.”
With regard to the “NAFTA highway thing ” that many deny, it is real. However. It runs from Texas to the Canadian border and is nowhere close to any major port.
I believe we were told that the Port of Long Beach was number two in the States.
I just verified that the busiest ports by containers in the world lists L.A. #7 and Long Beach #8