Phone tax facts of the day

by on November 10, 2006 at 2:18 pm in Economics | Permalink

…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.

KipEsquire November 10, 2006 at 3:25 pm

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.

Alex Ambroz November 11, 2006 at 12:20 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?

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