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ARRA-stimulas package-HSR
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<P mce_keep="true">The cost of an automobile is a personal expense incurred by the buyer. It is a factor in his or her personal transport option. As I pointed out, the only subsidy or public money associated with the purchase of an automobile occurs in those states that do not have a state income tax, in which case the buyer can deduct the attracted sales tax from his or her federal income tax return.</P> <P mce_keep="true">Boeing sells airplanes to a variety of air carriers around the world. It is in business to make money. In this country air carriers receive no direct subsidy for the purchase of their airplanes. In fact, I don't know of any carrier that buys airplanes; they lease them. The cost, which is part of their total cost structure, is recovered through fares. Except for the Essential Air Service Program, which I think is a waste of taxpayer monies; they receive no direct federal or state subsidies.</P> <P>Unfortunately, passenger railways require significant federal and state subsidies. They cannot survive without them. In FY08 Amtrak required $1.4 billion in subsidies. Those required by many state and local supported operations, on a per passenger mile basis, are even larger than the subsidies required by Amtrak. The Trinity Railway Express, for example, required an average subsidy of 39.5 cents per passenger mile in 2008 compared to Amtrak's average subsidy of 18.39 cents.</P> <P mce_keep="true">Passenger railway trains make sense in high density corridors where the cost of expanding the highway and airway systems is prohibitive. High speed rail proposals, as well as some moderate speed rail proposals, don't appear to meet these criteria and, therefore, don't make economic sense. This is why I keep raising the question of the proponents. What is your realistic plan to pay for them? Or better yet, how will you pay for them without increasing the federal debt?</P>
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