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Repeal of the 4.3 cents per gallon RR fuel tax

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[quote]QUOTE: Originally posted by gabe Because there isn't enough disagreement on this issue already: Dave, I certainly understand your assertion that subsidies--in all their various forms--are a poor idea because the "subsidy" doesn't go into the railroad's physical plant but lines investor's pockets. Presumably your ultimate contention is that it might be worth the money to improve our nation's transportation system if that is where the "subsidy" goes--which would in turn improve commerce, create jobs, etc.--but it is not worth the money to line investor's pockets, which is where the "subsidy" really goes. I am not taking issue with your ultimate conclusion. However, have you considered the possibility that railroad's using the "subsidy" to line investor pockets might lead to a bigger improvement of the railroad's physical plant than if the subsidy had gone directly to improving the railroad's physical plant? If railroads conclude that the best way to get the investment they need to make themselves viable in the future is to convince Wall Street that they are profitable and the amount of physical plant improvement that they could get from a meager subsidy would be miniscule in comparison, wouldn't the better course of action be--for both the railroad and the nation--to line investor pockets in the hope of bringing more investors to provide the money to make meaningful improvements to the physical plant? I am not asserting this contention trumps your view. A detailed look at the numbers would be required to determine whether this view is plausible. Gabe [/quote] Gabe- I like your thoughts. I must however take issue with your use of the term "subsidy". Eliminating an unfair tax such as the 4.3 cent RR fuel tax is not a subsidy. A subsidy is where one person or entity (in this case the U.S. Government) pays or assumes responsibility for paying the obligations of another. (assuming responsibility is also referred to as a guaranty under some circumstances. LC
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