Why so much misinformation? Because oil companies are against it.
California approved a high-speed rail project. The Federal government pays most of it, so California comes out ahead. The construction companies and workers will pay state taxes. They will also buy things in the state, so the state will get sales and income taxes from that as well. Also the workers won’t be collecting unemployment, etc. So this doesn’t cost the state, it makes money for the state, cutting our tax needs here and helping all of us.
The Federal government comes out ahead, too, because this improves the overall economy, boosting our international competitiveness, helping us all, boosting overall tax revenue, etc.
But beyond immediate state and federal tax revenue projects like this benefit our larger economy so much. It is called investment in infrastructure, and it pays off.
Thy explaining any of that to a Republican, entirely in the service of the big oil companies…
California Senate Narrowly Approves Rail Project – NYTimes.com
Several noted the incongruity of embarking on such a major project weeks after passing a budget that included deep cuts in spending on schools and other programs.
“This is a colossal fiscal train wreck for California,” said Senator Tony Strickland, a Republican. “Members, this bill is spending money we simply don’t have here in California.”
Mr. Brown heralded the vote, saying, “The Legislature took bold action today that gets Californians back to work and puts California out in front once again.”