Despite the fact taxpayers subsidize 32% of food and beverages sold on Amtrak, the company still loses more than $60 million from the refreshments alone every year.

Amtrak train passengers aren’t the only ones being taken for a ride. The railroad system loses more than $60 million a year on food and beverages, and taxpayers are picking up the tab…

How does Amtrak manage to lose money while selling a hot dog for $4.50?

Consider that passengers would pay an astounding $6.60 for the same hot dog if you took away a subsidy provided to Amtrak by taxpayers.

Revenue from food and beverages sold aboard Amtrak trains in fiscal year 2010 totaled $131 million, but the cost of providing the service was $192 million. That loss of $61 million means taxpayers provided a subsidy of nearly 32 percent.

Here’s the best/worst part: Since 1982, Amtrak has been required by federal law to break even or make money on concessions. So how dos the company comply with federal law? It doesn’t.  The company just ignores the law and sells the refreshments (subsidized by taxpayers) at a loss anyway.

Congresswoman Jean Schmidt (R-OH) has introduced legislation, called the Amtrak Food and Beverage Service Savings Act, to seek competitive bids for food service on Amtrak. The company’s costs should have to compete with proposals from outside companies that could provide the same service at lower cost and less or no taxpayer subsidization.

The comment section at that link, by the way, is being dominated by far-leftists trying to distract from the government-owned company’s losses. They would prefer taxpayers keep bleeding money rather than admit yet another government-run enterprise is inefficient. If you can, go over there and show support for reform. Don’t allow the left to dominate the discussion.