Waterway User Taxes: Myths, Facts, and Real Surprises

Abstract

The Federal Government increasingly imposes user fees to raise funds. This paper contends the trend is being exploited by railroad lobbyists to impair competing transportation modes. This paper exposes these tactics and places waterway and rail subsidies in proper perspective. It is concluded that the future welfare of the river industry hinges on the outcome of the user charge battle. If increased taxes are forced on water carriers without equal treatment being extended to all modes, the results could be devastating to waterway carriers, shippers and even the nation, which needs efficiencies in export movements to help offset costly oil imports.