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In FY10 the federal operating subsidy for Amtrak averaged 21.13 cents per passenger mile. It was greatest for the long distance train passengers; it was considerably less for the relatively short, high density corridors. The comparable subsidy for the nation's commercial airlines averaged 99 basis points per passenger mile whilst the subsidy for motor vehicles averaged 49 basis points per vehicle mile travelled.  These numbers can be found in or derived from the annual reports for Amtrak, FAA, DOT, and Homeland Security.   Deriving the federal subsidy per passenger mile requires allocation.  For example, in FY10 ticket taxes and fees covered 69.9% of the FAA's expenses; 30.1% came from a general fund transfer or other sources. But not all of the transfer goes to the airlines.  Most of it, in fact, benefits general aviation and military flights operating in FAA controlled airspace.  How much of it is attributable to the airlines? The FAA does not break it out.  I concluded that a fair allocation would be 30.6%, since this is the percentage of control operations attributable to the commercial airlines. The federal subsidy for the federal highway program is a bit difficult to fathom.  The federal fuel tax is 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel.  However, two cents of the tax goes to the Mass Transit Administration and 4.3 cents goes to the Treasury Department for general deficit reduction. Accordingly, one could say that motorists are subsidizing mass transit users and helping to relieve the deficit.   From its inception in 1956 until 2000 the Highway Trust Fund (HTF) not only collected enough money from motorists to pay for the federal highways, it run a surplus.  The surplus in 2005 was more than $10 billion, although it began shrinking after 2000 or thereabouts because the Congress refused to raise the fuel taxes to pay for building and maintaining the federal highway system.  Beginning in 2007 or 2008 the federal government had to transfer monies from the general fund to cover the shortfall in the HTF.  In FY10 the transfer was $14.7 billion.  Ironically, if one adds back the mass transit and deficit transfers, they nearly equal the FY10 transfer from the general fund to the HTF. In most instances state fuel taxes, licensing fees, and motor vehicle fees pay for the state highways.  They also pay for the operations of the Motor Vehicle Bureau, at least in Texas.  As is the case at the federal level, motorists not only pay for the highways and byways that they use, in Texas 25% of the fuel tax goes to fund education.    Local streets and county roads are usually paid for out of local property taxes, which are paid directly or indirectly by nearly every motorist irrespective of whether he or she is a property owner or renter.  However, because higher income people tend to live in fancier digs than lower income people, one can argue that upper income motorists are subsidizing lower income motorists. Motorists and airline passengers benefit from having the oil sea lanes policed by the United States Navy.  So too do Amtrak passengers.  The last time I checked Amtrak burns a considerable amount of diesel fuel.   It is true that highways do not pay taxes.  It would not make any sense for the government to tax itself since it owns and maintains the highways.  It pays for them with user fees as per above.  The commercial users, e.g. truck companies, intercity bus companies, etc. pay user fees to support the highways and roadways.  They also pay federal and state income taxes, property taxes, etc.  So too do the airlines.  In both cases they must earn a positive return or go out of business.  Amtrak, on the other hand, does not pay any taxes.  It does not even pay federal and state fuel taxes.  And it certainly does not cover its costs. If the real cost of each mode of transport was passed through at the price point, i.e. ticket counter, pump, etc., people would see the true cost of driving for example.  They might be more inclined to use public transport, including intercity passenger rail for relatively short distance travel in high density corridors where driving is cost prohibitive.  But they will not give up their cars without a fight.   I too believe that short distance passenger rail could at least break even if all modes of transport were priced transparently. But there is no way that the long distance trains could compete, unless someone has a miracle solution for the cost model.
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