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[quote user="ComradeTaco"]   There are too many factual inconsistencies in Sam's post to ignore.   "The so-called hidden subsidies that went into air transport and highways have been repaid or are being paid by the users" That is incorrect. Highways receive 51% of their funding from user fees. The rest comes from state and federal budgets. On the issues of aviation, I can't seem to find many statistics.  Source: <a href="http://subsidyscope.org/transportation/direct-expenditures/highways/funding/analysis/">http://subsidyscope.org/transportation/direct-expenditures/highways/funding/analysis/</a> " although in some instances the repayment mechanism has been indirect, and wealthy motorists frequently subsidize less well off motorists.  "  I really fail to see what you're referring to by indirect subsidies. "  Those who highlight the subsidies for airways, highways, waterways, etc. seemingly overlook the significant subsidies granted to railroads for their construction." This has been stated over and over again. Railroads in the United States were almost entirely paid for and run privately and financed by European or Eastern U.S. investors (source:<a href="http://www.jstor.org/pss/3111573">http://www.jstor.org/pss/3111573</a>) The only subsidies used to build railroads I recall were part of the Land-Grant act for transcontinental railroads. However, this is a subsidy which really didn't have much value within the construction of a railroad. Not to mention that The Milwaukee Road was built with zero subsidies whatsoever. None received operation subsidies as well. (<a href="http://www.oldmilwaukeeroad.com/content/brief/page15.htm">http://www.oldmilwaukeeroad.com/content/brief/page15.htm</a>) "In fact, it may be that the present value of the subsidies granted to the railroads trumps those granted to the airways, highways, and waterways because of the time frame." As stated above, private companies supported by mostly private mechanisms.    "Moreover, under the American Reinvestment and Recover Act (ARRA), the freight railroads have received hundreds of millions of dollars to improve their plant. " The reconstruction of ONE highway interchange: 125 Million USD (<a href="http://www.dot.state.mn.us/metro/projects/169/">http://www.dot.state.mn.us/metro/projects/169/</a>) "Those who point to European train networks seem to overlook the financial consequences of building passenger rail systems that do not cover their costs.  If the current debt crisis sweeping Europe is not a hint, I don't know what it would take to get the attention of those who espouse using Europe as a model." The European debt crisis is extremely complicated and began in Greece and moved next to Ireland both of which are not known for their railway investments. Credit swaps, real estate bubbles, shared currency.Curiously, if we look at this graphic, we found ourselves in worse Government deficit than our Eurozone counterparts. The very example you put forth contradicts your own argument. (<a href="http://en.wikipedia.org/wiki/File:Goverment_surplus_or_deficit_(EU-USA-OECD).png">http://en.wikipedia.org/wiki/File:Goverment_surplus_or_deficit_(EU-USA-OECD).png</a>) (Yes, yes I know it's Wikipedia, but the graphics is completely supported by info from Eurostat) Sam, I love to hear your opinion but points have to substantiated through evidence, not truthiness. [/quote] You can find support for my views in the primary source documentation, i.e. budgets and performance reports for the Highway Trust Fund (HTF) and the Federal Aviation Administration (FAA) amongst others.  They contain the primary data for my conclusions. Or you can read some of my previous posts on the subject of subsidies. They draw on the same primary databases. Bits of information taken from superficial articles do not strike me as terribly creditable.  I place little trust in news accounts. They tend to be cobbled together by reporters who don't understand the issue or even where to find the relevant information.  There is heaps of information regarding the Aviation Trust Fund and airport funding in the United States if one knows where to look for it.   For a variety of reasons user fees pay for a shrinking portion of the federal highway system.  The biggest is the unwillingness of the Congress to raise federal fuel taxes to compensate for increased highway growth and maintenance requirements.  As a result in FY10 the federal government transferred $14.7 billion from the general fund to the HTF. The FY11 transfer probably was similar, although I don't have the number yet. Who pays the money into the general fund from whence the transfers arise?  For the most part it is taxpayers with a federal income tax liability, as well as persons buying goods and services from businesses with a federal income tax liability. In FY10 46 per cent of those filing a federal income tax return paid no federal income tax. In fact, it was entirely possible for a family of four with an adjusted gross income of $50,000 to not only not pay any federal income tax but receive back a small check from the federal government.  Accordingly, the taxes were paid for the most part by filers with median incomes of more than $50,000 per year, with more than 75% of the federal income taxes paid by those with adjusted gross incomes of $100,000 or more.  You can find this information in the IRS statistical tables.  If you know how slice and dice the numbers you will be able to verify my numbers.   There are approximately 223 million adults in the United States, being defined as persons over 18 by the U.S. Census Bureau.  This data can be found in the U.S. Statistical Abstract, although it do requires some analytics to slice and dice it. Of this number approximately 210 million or 94% of adults have a driver's license.  Included in this group would be people who paid federal income taxes as well as those who didn't.  For analytical purposes, lets assume that the ratio is the same as the ratio of those who actually paid taxes in FY10.  This means that those who paid taxes into the general fund had some of their monies transfered to the HTF, which was used to help fund the construction and maintenance of the federal highway system that benefits all those who use it, i.e. those who had a federal income tax liability in FY10 and those who did not.  This is how wealthier motorists, who pay the lion's share of federal income taxes, subsidize persons down the income ladder.   But the picture gets murkier. The feds collect 18.4 cents on a gallon of gasoline and 24.5 cents on a gallon of diesel.  One might think that this all goes to the HTF.  Nope!  Two cents goes to the Mass Transit Administration and four cents goes for general deficit reduction. Thus, motorists are subsidizing mass transit and helping to defer the deficit.  You can find this information at DOT. In Texas, where I live, state highways are funded through a variety of user fees similar to those collected by the federal government. The major fee is the state fuel tax. But not all is as it appears for 25% of the fuel taxes in Texas go to education. Not highways!  And a small but growing amount goes to fund the Heartland Flyer and the Trinity Railway Express. So who is subsidizing who? County roads, farm to market roads, city streets, etc. are funded Texas, as well as most other states, from property taxes.  But some government entities get transfers from the federal and state governments.  To grasp the complete picture, one would need to go through the financial statements of every city, county, and state of the United States to understand who pays for the nation's roadways. Good luck! Information regarding the Aviation Trust Fund, as well as airport funding in the United States, is available if you know how to dig it out.  If you want an in-depth view of the subject, you should consult the financial reports for each airport in the United States in addition to the financial information provided by the federal and state governments.  Over the years I have looked at them for the major airports in Texas. They are available on-line. And if you want to know how the European rail system is funded, again the information is available from financial and operating reports that are available on line.  Most of them are in English. When you can cite the primary sources and put forth a cogent argument in your words, I might take your criticism of my views with something other than a grain of salt.
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