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Eric, <br /> <br />You analysis would be okay, if it wasn't for the misperception that the other modes do not pay all their costs of doing business. They do. It may be via some redistribution of user fees and allowing the will of localities to add to the pie, but in the end none are really subsidized, so your point is moot. Besides, railroads have a market power that none of the other modes have, namely access to monopolistic pricing via the spinelessness of the STB and the anachronistic owner-operator ROW. <br /> <br />Your other misperception that tax cuts have lead to less revenue is also completely wrong. Since Bush's tax cuts came into effect, revenues have increased substantially. It is the cost of fighting two wars, plus the hidden costs of increased environmental regulation that have resulted in these deficits. Cutting back "third nipple" operations like Amtrak makes sense in these times. <br /> <br />The Amtrak plan Mineta is pushing involves taking the government out of providing operations and refocussing that aid on only providing 50% of the infrastructure, consistent with other modal models. Hopefully, that rail infrastructure aid will also come from a user fee, since that is the best way to fund infrastructure. Rather than taking a portion of the railroads income tax reciepts, the feds should pass a fuel tax on railroads and use that money for rail infrastructure maintenance and development where public access is allowed.
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