Quote:
Originally Posted by Azure
10 million people annually at $10 per trip is $100 million per year.
That is just a guess at what a ticket price could be.
20-30 year payback? What about cost overruns? Similar rail projects across North America have always cost more than figured, and considering we'd have to use Bombardier and they can't do anything right I'm a bit skeptical of anything the Ontario government says.
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Theoretically infrastructure should increase overall economic productivity, which will in turn increase tax revenue.
Also, theoretically, the vast majority of the money the government is spending is going to Canadians, which results in a lot of the "expenses" being recouped in taxes immediately. For example, the construction worker earns $100k. 30% of that is taxed. Then the worker buys a truck. The truck is taxed. So is the income of the truck salesman.
So if the rail system is truly needed, then it should go ahead, and you can't just look at a simple cost/benefit analysis using ticket revenue.