Comments on: Congressional Joke http://o.masstransitmag.com/interactive/2008/12/11/congressional-joke/ Mass Transit's editor, Leah Harnack, speaks weekly on critical issues facing the public transportation industry. Thu, 15 Dec 2011 17:57:58 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Galen L. Dutch http://o.masstransitmag.com/interactive/2008/12/11/congressional-joke/#comment-8155 Galen L. Dutch Mon, 15 Dec 2008 17:27:56 +0000 http://www.masstransitmag.com/interactive/2008/12/11/congressional-joke/#comment-8155 Sell In Lease Out (SILOs) were ruled illegal by the IRS because they are are form of "Imputed Income" that was not being taxed. The reason for this ruling that the transit agencies -not the actual owner(s)of the transit vehicles involved in the SILO agreements- were carrying the liability insurance on the vehicles instead of the leasing companies themselves. Since liability coverage (and the payment of damages for personal injuries) are a huge part of the expenditure in running a transit vehicle, it would consume all of the profits made by the vehicle leaser. In other words, the leasers were collecting the profits, but the transit agencies were footing the bill for the liability coverage and damage awards and this is considered a form of Imputed Income. Sell In Lease Out (SILOs) were ruled illegal by the IRS because they are are form of “Imputed Income” that was not being taxed.

The reason for this ruling that the transit agencies -not the actual owner(s)of the transit vehicles involved in the SILO agreements- were carrying the liability insurance on the vehicles instead of the leasing companies themselves.

Since liability coverage (and the payment of damages for personal injuries) are a huge part of the expenditure in running a transit vehicle, it would consume all of the profits made by the vehicle leaser.

In other words, the leasers were collecting the profits, but the transit agencies were footing the bill for the liability coverage and damage awards and this is considered a form of Imputed Income.

]]> By: Schuyler http://o.masstransitmag.com/interactive/2008/12/11/congressional-joke/#comment-8154 Schuyler Mon, 15 Dec 2008 14:33:33 +0000 http://www.masstransitmag.com/interactive/2008/12/11/congressional-joke/#comment-8154 If there is a transit agency in need of a bailout, it's Massachusetts' MBTA. Debt in the billions that there is no way to pay. Some of the debt is grandfathered debt left by the predecessor companies that were rolled into the T in the beginning, in 1964 (I think). Debt that is older than many of the patrons riding it today. There are rumors that the debt is so bad that we may be in for "huge fare increases." Right now a subway ride costs $2.00, so it's not a true burden, but "huge" has been rumored to mean something on the order of $7 or $8 per ride. Walking or biking may become very desireable. If there is a transit agency in need of a bailout, it’s Massachusetts’ MBTA. Debt in the billions that there is no way to pay. Some of the debt is grandfathered debt left by the predecessor companies that were rolled into the T in the beginning, in 1964 (I think). Debt that is older than many of the patrons riding it today. There are rumors that the debt is so bad that we may be in for “huge fare increases.” Right now a subway ride costs $2.00, so it’s not a true burden, but “huge” has been rumored to mean something on the order of $7 or $8 per ride.

Walking or biking may become very desireable.

]]> By: J Drake http://o.masstransitmag.com/interactive/2008/12/11/congressional-joke/#comment-8128 J Drake Fri, 12 Dec 2008 17:06:27 +0000 http://www.masstransitmag.com/interactive/2008/12/11/congressional-joke/#comment-8128 Maybe APTA, again, should lead all of us up the Hill... TA's, Buses, OPS, riders, consultants, fare systems folks et. al...just as the auto people had their subs...upon subs...upon subs out in (somewhat) force. We are the 'somebody'. Obama will more than likely stimulate the economy with yet another massive billions for infastructure...yes, get the in-waiting projects moving, but the funds also need to be allocated to doing things right once and for all. And in timeframes that our talent can achieve, if allowed. Or else, it'll be more of the same... each fighting for their own piece of the pie...while we collectively throw out the whole (country). What we here in the US and the world is experiencing is a major cleansing...I just pray that wisdom prevails in all areas. So far...I don't see it. Maybe APTA, again, should lead all of us up the Hill… TA’s, Buses, OPS, riders, consultants, fare systems folks et. al…just as the auto people had their subs…upon subs…upon subs out in (somewhat) force. We are the ‘somebody’. Obama will more than likely stimulate the economy with yet another massive billions for infastructure…yes, get the in-waiting projects moving, but the funds also need to be allocated to doing things right once and for all. And in timeframes that our talent can achieve, if allowed. Or else, it’ll be more of the same…

each fighting for their own piece of the pie…while we collectively throw out the whole (country). What we here in the US and the world is experiencing is a major cleansing…I just pray that wisdom prevails in all areas.
So far…I don’t see it.

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