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On a Long Train Trip, Rare Pleasures Return
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<p>[quote user="daveklepper"]</p> <p>And most motorists don't realize the hidden subsidies that they enjoy, especially long distance on specific interstate highways. [/quote]</p> <p>And you don't appear to understand federal highway financing in the United States, i.e. that of the 18.4 or 24.4 cents motorists pay in federal fuel taxes (gasoline or diesel), two cents goes to the Mass Transit Administration and four cents goes to the Treasury Department for deficit reduction. The subsidy is just the opposite of what many people think. In FY10, the amount of money transferred to the MTA and TD would nearly equal the amount of the transfer (so-called highway subsidy) from the general fund back to the Highway Trust Fund. You assert that motorists receive hidden subsidies, but you don't provide any amounts. </p> <p>No matter how you slice and dice the numbers, the so-called federal rail passenger subsidy in the United States, either per passenger or per passenger mile, is nearly 20 times the federal subsidy for air, motor vehicle, etc. </p> <p>One of your arguments, i.e. that highways don't pay real estate taxes, is unique. It makes little sense since government(s) own most of the nation's roadways. Having said that, one could argue that roadways take land off the property tax rolls, to the extent that it could be used for tax generating purposes, and shifts the tax burden to residential, commercial, industrial and agricultural users. </p> <p>Determining the value of the land taken off the tax rolls for highway purposes would be a nightmare. In some locations, such as major metropolitan areas, one might be able to come up with a number, predicated on the assumption the land could be converted to tax generating purposes, which is not a given, and would require some unique estimates. In many parts of the country, however, the land would little or no tax value, i.e. it is too remote or unfit for any other purpose. </p> <p>To the extent that land is removed from the tax rolls, the tax rates necessary to generate a required level of government revenue must be higher. Land for highways is not the only part of the equation. Land for public schools, places of worship (churches, synagogues, etc.), has also been removed from the tax rolls. </p> <p>There are more than 206 million licensed drivers in the United States. Most of them pay property taxes, either directly if they own property, which approximately 65 per cent do, or indirectly if they rent. Theoretically they are paying higher rates to compensate for the land supposedly taken off the tax rolls for streets, county roads, state highways, and federal highways. However, since there are so many of them compared to the number of people who use Amtrak, they generate sufficient revenues to pay for the nation's roadways.</p> <p>If you want to use the highways don't pay real estate taxes argument to justify the subsidies for Amtrak, as well as other forms of passenger rail, you should remember that Amtrak does not pay any taxes on the land that it owns. In fact, it does not pay any taxes. </p> <p>You have claimed that Amtrak makes public service contributions on its stations. Actually, most of Amtrak's stations are owned by municipalities, which don't collect taxes on them, and for which a public service contribution would make no sense. In any case, I would like to see the numbers. </p> <p>Penn Station in New York and 30th Street Station in Philadelphia are owned by Amtrak subsidiaries. Several years ago I reviewed their financial statements. I did not see anywhere in the reports where they made a contribution for public services. Of course, that could have changed since then. I would be happy to have a reference to verify your assertion.</p> <p>At the end of the day I have stressed two consistent themes. Passenger trains make sense in the United States for relatively short, high density corridors where the cost of expanding the airways and highways is prohibitive. Long distance trains make no sense. And all transport subsidies should be eliminated. I walk the talk. I ride trains in Texas (Austin to Dallas or San Antonio) and the NEC, and I write at least annually to my elected representatives to express my views, i.e. stop funding Amtrak's long distance trains and eliminate all transport subsidies. </p> <p> </p> <p> </p>
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