A quick economics lesson…

Ezra writes:

Weinstein goes on to suggest three ways for imrpoving the rail infrastructure: Invest in densely populated corridors first, focusing on the creation of an effective and efficient commuter rail system; pump money into high speed rail, which has proven attractive to riders; and give Amtrak a dedicated funding source, in much the same way that highways and airports have dedicated funding streams (the gas and ticket taxes, respectively). Weinstein suggests a “4.3-cent gas tax paid by the railroad industry on diesel fuel, a ticket surcharge on all passenger rail systems (including commuter rail systems), and a match contribution from states in which the rail system operates,” all of which sound reasonable enough.

To make life better, you tax the things you don’t want, subsidize the things you do want. You tax the negative externalities, subsidize the positive externalities. We don’t need any new levies on rail riders. What we ought to do is take revenue raised from the gas tax and use it to fund more rail, rather than more roads. Believe me, there’s plenty to spare.


One Response to “A quick economics lesson…”

  1. Stephen Karlson Says:

    Why not amend some of the Federal Railroad Administration regulations that require expensive safety appliances on high-speed railroads where no benefit to those appliances has ever been demonstrated?

    More here.

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