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HSR under new scrutiny
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<P mce_keep="true">[quote user="Phoebe Vet"] <P><FONT color=#990000>Yes, but Southwest Airlines didn't have to build and maintain their own air traffic control system, navigational aids, and pay property tax to every political entity that it overflies.</FONT></P> <P><FONT color=#990000>I bet that helped a lot in their quest to be profitable. </FONT>[/quote]</P> <P>One of the advantages befalling the airlines, as well as other common carriers, is their sharing of common facilities. That is to say, they don't pay the full cost of the facilities because they are not the exclusive users. The same is true for Amtrak, which is a niche user on most of the rail systems that it runs its trains over. The exception, of course, is the NEC, where Amtrak is the major but not exclusive owner.</P> <P mce_keep="true">With respect to property or other taxes, the following should be kept in mind. "Pursuant to the provisions of Title 49 of the United States Code, Section 24-301, Amtrak is exempt from all state and local taxes, including income and francishe taxes that are directly levied against the Company. Accordingly, there is no provision for state and local income or francishe taxes recorded in the consolidated financial statements....." This statement is contained in the 2009 Financial Statements, which are included in Amtrak's Annual Report.</P> <P mce_keep="true">The nation's airlines pay federal and state income taxes, assuming that they had a profitable year, which clearly has not always been the case. In addition, they pay franchise, inventory, and sales taxes. For example, each year SWA takes down as much of its inventory as possible just before valuation of its inventories in Dallas in an attempt to mitigate its local inventory taxes. The taxes are a significant burden. </P>
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