Democrats Demand Taxpayer Bailout for Unprofitable Amtrak

CNSNEWS.com ^ | 6/24/02 | Susan Jones

[kattracks]

(CNSNews.com) - Amtrak supporters - including many New York and New Jersey Democrats - are demanding that U.S. taxpayers bail out the government-run passenger rail service, which faces a mid-week shutdown without a financial infusion.

"With a loan guarantee from the administration, rail service can be maintained ...as Congress continues to work with public and private partners in devising a long-term strategy for reform," said Sen. Joseph Biden (D-Del.). "Now more than ever, our nation needs national passenger rail service, and I hope that the administration finally lends its support to Amtrak by providing this loan guarantee."

Biden and others want the government to help Amtrak cover a $200 million shortfall.

Amtrak officials were meeting Monday with Transportation Secretary Norman Mineta to discuss the financial crisis.

Sen. Robert Torricelli (D-N.J.) called it a "crisis that is unnecessary and easily averted...This is not a question of losing a few tourist trains through rural Montana...This is our economic infrastructure," he said.

But critics say Amtrak has dug its own financial grave, by keeping unprofitable routes and depending on taxpayers to bail it out.

Speaking on NBC's Meet the Press Sunday, House Speaker Dennis Hastert (R-Ill.) said it's time for Amtrak to close unprofitable routes, as part of an overall plan to become more efficient.

[Phantom Lord]

Amtrak was supposed to be 'self supporting' by 1980. 22 years later it is still a multi-billion dollar money pit. Time to cut it off.

[goldstategop]

It will never be self supporting. I could see a case made for retaining regional corridor routes but you don't need Amtrack for it. And Joe Biden's fantasies aside, this country can't afford a national rail passenger service. Even Amtrack doesn't have coast to coast service.

[steve50]

I agree, but it won't happen. Just another money pit to justify taking tax dollars to throw at

[Stultis]

And Joe Biden's fantasies aside, this country can't afford a national rail passenger service. Even Amtrack doesn't have coast to coast service.

Where did you derive the fantastical notion that Biden gives a hoot about the folks in fly-over country? They are only there to generate the revenue which maintains infrastructure for Eastern elites. Amatrack subsidies are the obverse of the environmental laws which are strictly enforced in the West and in rural areas, and waved or ignored on the East coast or in D.C.

[gaspar]

Biden takes Amtrak to work every morning. Why else do you think he wants to subsidize it?

[goldstategop]

Hey I agree with you. The eastern Senators simply want to have the rest of the American people subsidize a loss leader for people who take the train from DC to Boston. They could care less about whether people in the rest of the country have rail service or for that matter any form of transportation at all, so this is another means of stiffing it to people who would never vote for them or their projects. I mean what has Sen. Biden done for the rest of the country lately. And here he wants to keep Amtrack afloat when it can't even pay its own bills. Whatta guy!!!

[Teacher317]

Amtrak has never once in its history broken even, even with billions in federal subsidies, bailouts, aid, and tax breaks. Let the 20th Century's passenger stagecoach die, or charge a fare that will allow it to break even (and price itself out of existence... as it should).

[Teacher317]

This thing must be shut down. It benefits less than 6% of the population. We dont have subsidized transportation out here.

Oh, PLEASE don't let the spend-and-tax-and-spend liberals hear you say that... they'll "fix" the problem by making dozens of Amtrak failures across the country... while bragging about creating jobs, saving an endangered industry, and saving the economy... at our expense... to their benefit at the polls.

[mdwakeup]

It's not just Dems. Republican Helen Bentley, who's running for Congress in Maryland's 2nd district, called WCBM's morning show today to explain why a bailout is essential. Her main point was that a functioning rail system was key to national security, and besides, all other kinds of transporation get government subsidies.

[mdwakeup]

What? The government doesn't build highways where you live?

[Principled]

Nothing at all prevents anyone from giving Amtrak as much of their money as they want....nothing.

It's not just that they want Amtrak running - they want non-users to pay for it. It's the northeast liberal way! Demand something and demand that others pay for it!

[Temple Owl]

You can give odds that Biden's Rino buddy, Arlen Specter, will back him for the same reason.

[Bagehot]

Senator Biden, can you spell 'PRIVATIZE' ?

[Phantom Lord]

Sure, tax payers dollars are doled out for the construction and maintanence of highways.

The tax on gasoline, both state and federal, plus car registration and license fees were instituted for the purpose of paying for road building and maintanence. If the taxes collected from these sources were dedicated to the purpose that they were instituted for insted of being dumped into the general fund and used for every program under the sun there would be plenty of money for road construction and maintanence. The BILLIONS collected in these taxes are far more than likely to exceed the cost of construction and maintanence.

But like every other tax instutited for a specific purpose, they are never fully dedicated to said purpose.

[dennisw]

RATS are in mad delight over the prospect of pinning a government shutdown on President Bush. Pinning Amtrak on him same as they pinned the big Federal shutdown (1995) on Newt Gingrich and the Republicans.

[goldstategop]

I wouldn't put it past them to convince the country Amtrack was needed for our anti war efforts and the one who stood in the way of this essential element of our national security was President Bush. Never underestimate the Rats.

[varina davis]

Let the wealthy Northeastern states subsidize their rail passenger service, and help AMTRAK shore up service along the Western routes where passenger transportation is sadly lacking. Don't cut western routes, add to them.

I absolutely believe trains are the best way to move people and many more would ride the rails if service is improved to outlying districts.

[B. A. Conservative]

It's successor would be self supporting in less than a couple of years if Congress will stop funding this albatross.

Could we target the US Post Office next.