Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote user="CSSHEGEWISCH"] The Rail Passenger Service Act was written the way it was because Amtrak wasn't expected to last for more than a few years and would provide a somewhat graceful exit from the passenger business for the various railroads still operating passenger service.  The "for profit" clause existed as an escape hatch for winding up operations in a few years after May 1, 1971. Question:  Is there a similar "for profit" clause in the statute which established that bastion of socialism known as the Tennessee Valley Authority? [/quote] What is the authoritative source for saying that Amtrak wasn't expected to last for more than a few years and claiming that the for profit clause existed as an escape hatch for winding up operations in a few years after May 2, 1971?  If that is true, then the sponsors committed an accounting fraud. We have an organizational format that says otherwise. At the end of the day, however, it does not matter. Amtrak has never come close to covering its costs; it has racked up loses in excess of $28 billion.  Add in the opportunity costs for that money, i.e. options, and the cost to the taxpayers is significantly higher.   The TVA was established as a not-for-profit commercial enterprise.  It was expected to cover its costs through its rate structure. It has done that on a consistent basis, thanks in no small part to the fact that it is able to tap into tax free funding.  In other words, the taxpayers are underwriting the TVA's ability to offer its customers lower than competitive market rates.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag