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The arguement about whether it was proper for the federal government to pay for the Interstate highways was central in the original law establishing the Interstate Highway System. Fiscally conservative members of Congress objected to the original proposal to jump-start the Interstate project with goverment-issued bonds. That proposal was dropped. The final bill requred that all Interstate highway grants be paid out of current federal gas tax revenue. No general tax revenue or bonds were to be used for the grants.If we followed that rule, then we wouldn't have Interstate Highways.But no, I'm not for government not paying for anything. As I said many times, in practical terms I'm simply for government not paying for things that fewer than a large majority actually want.
Today, the large majority want them because we’ve become accustomed to them. But when they were first proposed, that wasn't something that the "majority" wanted, much less wanted to pay for.
And of course that brings us right back to the fact that had the government not interfered with transportation matters, then we wouldn't be needing to fund something that perhaps a majority may or may not want.
Only with that "pay as you go" provision did the bill finally move through Congress to the desk of President Eisenhower. Well, actually to his hospital bed. President Eisenhower signed the "Federal-Aid Highway Act of 1956" on June 29, 1956 at Walter Reed Army Hospital where he was recovering from stomach surgery. The rest, as we say, is history.
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