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Phone tax facts of the day
...the telephone tax is a very inefficient way to help poor people, says Thomas Hazlett, a professor at George Mason University, in a June white paper (senior.org/USFstudy). One Hawaiian phone company is getting an annual subsidy of $13,345 per line. It would be cheaper to give these people free satellite service.
Alaskans are getting rich off oil royalties but still qualify for an average $175 a year each in phone handouts. The citizens of Jackson Hole, Wyo. are winners, too, to the tune of $282 each. Does Harrison Ford really need your help?
That is from Bill Baldwin at Forbes.com.
Posted by Tyler Cowen on November 10, 2006 at 02:18 PM in Economics | Permalink
Comments
Similar numbers for Amtrak. By some metrics the per-passenger-mile subsidy is so high that it would actually be cheaper for the government to buy them airfare instead.
Posted by: KipEsquire at Nov 10, 2006 3:25:19 PM
Great points. Is Thomas Hazlett related to Henry? ;-)
Posted by: Chris Meisenzahl at Nov 11, 2006 7:26:53 AM
Regarding Amtrak, does anyone else have the idea that the gov't is purposefully allowing it to be run straight into the ground only in order to hasten its demise?
Posted by: Alex Ambroz at Nov 11, 2006 12:20:57 PM
Regarding Amtrak, does anyone else have the idea that the gov't is purposefully allowing it to be run straight into the ground only in order to hasten its demise?
No, at least not if you're talking about the executive branch or the actual appointees leading Amtrak. They've in general done a good job with what they've had. They've also proposed cutting the completely wasteful money-losing lines and concentrating on the money-making ones at times, or just at doing the best with what they can. (Not just the Northeast Cooridor is profitable-- the Milwaukee-Chicago line does well.)
The problem is more that individual Senators and Congressmen insist on Amtrak going through their states and districts. Many of the anti-Amtrak subsidy Senators and Congressmen (like Sen. McCain) are notably those who represent areas that Amtrak doesn't go through. (No Amtrak service in Arizona.)
One could make a better case that the Executive Branch has attempted before to make it ripe for privatization, but that's been blocked legislatively as well.
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