The Railroading of Amtrak

Although government support of rail is necessary–since passenger fares seldom cover the full cost of train service–this subsidy pales in comparison to the hidden costs of road travel. For example, in the United States, few people realize that direct taxes on automobiles and gasoline barely cover two thirds of the cost of road building, maintenance, administration and safety.

Stephen Goddard, in his 1994 book Getting There: The Epic Struggle Between Road and Rail in the American Century, found that hidden subsidies for drivers amount to well over $2 for every gallon of gasoline sold.

 

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