Thomas Daschle: “Congress last year approved a $2.3 billion tax program primarily to finance capital improvements for Amtrak. This…”

“Congress last year approved a $2.3 billion tax program primarily to finance capital improvements for Amtrak. This amendment applies to that legislation, which was part of the Taxpayer Relief Act of 1997. Under the able and distinguished leadership of the Chairman of the Finance Committee and the Ranking Member, the law wisely set aside 1 percent of the total tax benefit for each state with no Amtrak service, which amounts to $23 million. The 6 states currently lacking Amtrak service are South Dakota, Wyoming, Oklahoma, Maine, Alaska and Hawaii. However, the law limited the use of those funds by non-Amtrak states to inter-city passenger rail or bus service capital improvements and maintenance, or the purchase of inter-city passenger rail services from the National Railroad Passenger Corporation. This formulation presented real problems for states like South Dakota, Wyoming, Hawaii and some of the other non-Amtrak states that have no passenger rail service and only limited inter-city bus service. Due to these limitations, this otherwise valuable funding would not significantly benefit our states, nor could they wisely invest funds in such service. Our amendment would expand the eligible uses of funding provided to non-Amtrak states under this provision to include the expenditure of such funds for transit, rail and highway safety, state-owned rail lines, small rural air service facilities, and passenger ferryboat service.”