Report: Florida's Rail Rejection Saved U.S. From Obama Tax Scheme

A CATO Institute researcher says Florida Gov. Rick Scott's rejection of ObamaRail funds spared Americans from a scheme to jack up energy prices through new taxes.

Randal O'Toole wrote Tuesday:

"To sell his high-speed rail program, President Obama desperately needed a success story -- a high-speed train operating during his administration that would awe the public and lead to a national demand for more such lines. That success story was going to be Floridas Orlando-to-Tampa line, the only true high-speed routethat could have been completed during Obamas term in office (assuming he is re-elected).

"Anticipating that success, the administration drafted a proposal to use federal gasoline taxes and a new energy tax to fund $53 billion for more high-speed rail lines over the next six years.

"The chances of that happening died when Florida Governor Rick Scott decided to turn back the $2.4 billion in federal dollars dedicated to the Orlando-Tampa line," O'Toole wrote.

Predictably, the New York Times and like-minded old media in Florida pilloried Scott's decision as a congestion inducer, but the libertarian O'Toole argues:

"No one seriously believes that intercity rail will ever relieve traffic congestion, most of which is in cities, not between them. In its original application for high-speed rail funds, Floridas DOT admitted that Orlando-to-Tampa traffic grows more every five years than all the cars the trains were expected to take off the road, so at best high-speed rail was a very expensive and temporary solution to congestion."

O'Toole calls this the end of the line for ObamaRail.

"Outside of the Times editorial offices, most transportation experts agree that the presidents high-speed rail program is over and his draft transportation bill is dead on arrival," he states.

Read the Obama administration draft proposal here.