Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (181078)	5/12/2005 12:06:52 AM
From: BelowTheCrowd	Respond to of 186894

> they are a sinkhole for federal subsidies. An amazing amount of money flows into alaska. I don't know if it is the national parks, or what. < National forests tend to be the big drain. Logging is the business interest that benefits most from the huge subsidy. The way it works is that the Forest service pays to "build roads" through the national forest in order to "provide access" for logging and other types of mineral extraction. They then sell the lumber and other resources at set prices. Problem is that in some areas, the major expense is in providing access. In some sections of national forest, it can cost over $100 in "access improvements" to generate a single dollar of lumber revenue. And of course, the Forest Service doesn't build those roads themselves. They hire the logging companies to build the roads on their behalf. The logging companies get paid to build roads, then buy the lumber accessed by those roads at below market rates. In part as a result of this, the US spent $1.89 for every tax dollar generated in Alaska in 2003, which is the second highest in the nation. Without that regular subsidy, Alaska would most likely not be able to afford the "dividend" it pays to its residents. In California the number was $.78, ranking 43rd. The vast bulk of the states that get more than they put in tend to have large natural resource or agricultural industries, though there are a few that clearly get the large spending amounts due to large military or government facilities. taxfoundation.org