EDITOR: The bullet train proposal present several key points for
debate and discussion of such a major undertaking.
EDITOR:
The bullet train proposal present several key points for debate and discussion of such a major undertaking.
However, in comparing to the airline industry, it is important for all to realize that the airlines are in fact subsidized. While these subsidies are indirect, they are in fact massive. Fully one-third of the FAA budget is supported by general revenue taxes and not user fees.
In most cases, airports are operated as non-profit quasi-government agencies. As such they enjoy lower cost of capital for their projects, and no requirement to earn a return on invested capital for shareholders. Furthermore, in most localities, airports are exempt from property taxes. These are all subsidies to the airline industry and amount to billions of dollars each year.
By contrast, most industries pay property taxes on owned properties (offices, plants etc.), must earn a profit to stay in business, and a healthy return on invested capital. Of note, the nations freight railways pay property taxes, and pay for their own “traffic control.” These economic facts is one reason why Amtrak is subsidized, and why a small potion of the airline system, the airlines themselves, appear to earn a profit. Without those on-going subsidies, we would not have the airline system we enjoy today. These are my personal views. Good luck in the debate
Jim Langston
Clearwater, Fla.
