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In FY11 Amtrak paid the host railroads (CSX, BNSF, UP, etc.) $123.4 million to lift its trains. How much did it pay the Norfolk Southern (NSC) to host its trains?  How much did it cost the NSC to host Amtrak's trains? These are the key questions. The answers are not to be found in a theoretical construct. They can be found in Amtrak's and NSC's detailed accounting records.  No one posting to these forums is likely to get the data.  In FY11 N&S had accrued federal and state income taxes of $1,002 million. It had deferred income taxes of $527 million. It paid net of refunds and prior period adjustments $289 million in income taxes. As of the end of the accounting year, NSC had $7.5 billion in deferred income taxes. Only those who have access to company's accounting records would be able to unravel the deferred tax liabilities and know the ultimate impact on the corporation's income statement. As of the end of FY11 N&S had $7.8 billion of deferred property taxes plus a pending property tax credit of $9 million. It appears that NSC has not paid much in the way of property taxes for a long period of time, probably due to the credits it gets from its ownership stake in Conrail Inc. It has a 58% economic interest and a 50% voting interest in the jointly owned entity with CSX.   The information regarding N&S's tax obligations can be found in the 10k, which the company files annually with the SEC. Even here, unless one is a tax accountant or tax lawyer, with access to the company's tax records, getting a true picture of the company's tax liabilities is impossible.   There is usually a significant difference between what a large corporation accrues for income taxes, as well as other taxes, and what is paid. The variances are usually a function of different interpretations of the relevant tax laws by the corporation and the IRS. It takes the IRS two to five years to complete the audit of a large corporation; therefore, it is not unusual for it to have just signed off on an audit that was completed two to five years ago. Highways don't pay taxes. True! In Texas most of the land that they occupy is relatively worthless. What is missing from the analysis is recognition that the highways in Texas, whilst they removed some land from the tax rolls, spawned thousands of businesses that pay millions in taxes. As the CBO' studies have shown, because of different state, county, and local methodologies for paying for highways, airways, and waterways, the users don't see the true cost in many instances. Nevertheless, as pointed out in a previous post, the users ultimately pay it, although a disproportionate share is borne by upper income users.   What is also missing from the analysis is any mention of the fact that Amtrak pays no taxes.  And it pays little if any rent on most of the stations that it calls on.  What is the value of these subsidies?  One would have to go through every taxing jurisdiction served by Amtrak to determine the value. It would be a daunting task. In addition, assuming for a moment that passenger rail is not getting a fair shake, where will the money come from to gin up the parity sought? This nation is $16+ trillion in debt, and it is facing unfunded liabilities of more than $46 trillion. And that is the intermediate estimate. The worse case scenario places the unfunded liabilities north of $70 trillion. The idea that the nation's motorists are going to give up real and perceived monetary benefits to expand a passenger train network is a political non-starter.  I would like to see improved passenger rail service in the I-35 corridor.  So what is happening?  I-35 is being rebuilt from the Mexican to Oklahoma borders. This is what all but a few rail buffs in Texas want. Better passenger rail service It is not going to happen in Texas. Not in my lifetime at least!
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