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“Culturally, this is type of transportation is not utilised by any significant percentage – less than 5% – of the population, making the likelihood of success even smaller. “Given the attributes of this project, it will fail privately and require huge government subsidies, as the vast majority of HSR worldwide does.” “Texas has no appetite to subsidise HSR, or even passenger rail,” says Workman. Financial support for the project, he argues, will inevitably rest on the shoulders of taxpayers.
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Not so says Kyle Workman, president of the campaign group Texans Against High Speed Rail (TAHSR), who accuses Texas Central of fudging its funding policy. For Texas Central, as a private company, most of its assets –tracks, maintenance facilities, stations – and capital expenditures are taxable.” “Typically, passenger transportation systems, such as highways, toll roads and transit, do not pay taxes because they are government-owned and operated. “As a private company, Texas Central is a taxpayer, not a tax-taker,” he adds.
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"As a private company, Texas Central is a taxpayer, not a tax-taker."
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So far, Kelly claims the firm has received in excess of $155m, with the first $75m funded solely by Texas-based investors and families.Ĭommercial and financial planning, he adds, will be underwritten and critiqued by “some of the most seasoned and experienced equity and debt professionals in the world, while equity will derive from institutional investors and specialist infrastructure investment funds. It will prove the viability of high-speed train service in America, seeding domestic manufacturing industry for future deployments.”Īccording to the company, the project will be entirely privately funded, in line with its ‘market-led approach’. The Texas high-speed train will create a brand new industry in Texas and the United States. “Texas Central will employ up to 1,000 jobs permanently, when operational. These are good jobs with competitive salaries.” The project, it says, is expected to generate more than $36bn in economic benefits over the next 25 years through a mix of direct spending, taxes, maintenance facilities, passenger stations and capital expenditures.Īlso, Kelly believes “the project will create 10,000 direct jobs per year during construction. High-speed rail could bring numerous advantages to Texas, claims Texas Central. Until then, timelines represent the best estimates for milestones, many of which the company depends on others to achieve.” More jobs and economic stimulus without cost to Texan taxpayers They may also believe that it was a matter of bad luck, but seldom do they believe it is because of their own behavioral biases.“When these processes are complete, the timelines will become more solidified. Typically, investors believe the reason they have so many large, unrealized losses is that they bought the stock at the wrong time. At best, it's "dead" money at worst, it drops further in value and never recovers. They inevitably end up with a number of stock positions with large unrealized capital losses. In spite of the logic for cutting losses short, many small investors are still left holding the proverbial bag.