
Originally Posted by
Melonie
^^^ well, that's where the ongoing subsidies come in. In order to apparently reduce high speed rail ticket prices to the point where some number of riders will actually choose to take the train instead of flying, California will wind up having to institute 'stealth' subsidies for high speed rail via higher California gasoline taxes, via higher California state income taxes, etc. ... all of which will have a negative effect on both future consumption and future business / economic growth ! This is already SOP in regard to New York City Subway 'stealth' subsidies - where the actual 'break even' subway token price is somewhere around $6 but actual subway token prices are set at 1/3rd of that level, with the shortfall being covered by 'stealth' transfers of NY statewide gasoline taxes, state income taxes, higher than necessary interstate highway / bridge / tunnel tolls etc. But we digress ...
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