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Spaceport angst

Everyone’s in favor a new spaceport, until someone mentions the T word. Taxes. The Albuquerque Tribune, following up on this week’s announcement of Virgin Galactic setting up operations as a to-be-built New Mexico spaceport, tracks down how the spaceport will be paid for. The majority of the money, including $100 million in capital outlays and $35 million in transportation and other funding, into the project, with $90 million to come from federal and local sources. While the federal funding isn’t specified, the local funding could come in the form of “a local option gross receipts tax” for businesses in that part of the state. That proposal has generated some opposition from politicians from that part of the state: “At first blush, I don’t think that’s the prudent way to do it,” said state senator Leonard Lee Rawson, who just yesterday was raving about the project. His concern is that the project could provide revenue for the whole state, with some taxpayers paying a disproportionate share of taxes for it.

That complaint is minor, though, compared to the reaction in Florida to the announcement. Florida Today minces no words in an editorial, saying that the Virgin/New Mexico deal “shows more starkly than ever how Florida is failing to attract the 21st century space business the state and Brevard County desperately need to offset thousands of coming workforce cuts at NASA.” The editorial also complains that the Florida legislature failed to take up a proposal to create an aerospace incentive fund intended to lure the eventual CEV developer to establish operations in Florida. Few are spared the wrath of the paper’s editorial board, including Gov. Jeb Bush:

New Mexico has a business-friendly spaceport — Florida, none.

New Mexico has anted up $225 million to spawn new-era space jobs — Florida, zilch.

New Mexico has a hands-on governor who has made space business a top priority — Florida doesn’t.

15 comments to Spaceport angst

  • Can anyone really blame New Mexicans for resenting the cost of this pie-in-the-sky spaceport? Why should the government lay down as much money as Virgin Galactic plans to spend itself? Virgin Galactic could fold for any of several reasons, which would leave New Mexico with a useless $225 million rest area.

    And yes, people generally think that spending is good and taxes are bad. Taxation is theft; spending is our due.

  • Mike Puckett

    “Virgin Galactic could fold for any of several reasons, which would leave New Mexico with a useless $225 million rest area.”

    Virgin Galatic is not the sum total of the commercial space universe. That is like arguing that should Delta Airlines fold, Atlanta will be stuck with a usless multibillion rest area in Hartsfiled-Jackson INA.

  • While this does seem like a lot of money, and I’m not certain that taxpayers need to support the space tourism industry, I can think of a lot of worse things to spend tax money on.

    Taxpayer support of new industries is nothing new: read any good history of the transcontinental railroad or the current subsidies for the highway and freeway systems.

    Greg’s complaint seems to be part of his reflexive opposition to all things human spaceflight, rather than any thought out position on tax policy. For example, he doesn’t seem to object to another pie-in-the-sky fund that generates no immediate benefit, State and Federal support of university-based mathematics professors.

    — Donald

  • Actually with rising energy costs, New Mexico is running a $1 billion dollar tax surplus, and this spaceport has been talked about for two decades that plus the Virgin money may just finally make this a reality. Gov. “Big” Bill Richardson has done similar incentive deals to bring over 31 movies and one series to the state in the last three years. He’s a closer.

  • David Davenport

    Know what this pork barrel deal is going to do to the general public’s perception of alt.spacers? aAlt. spacers are just another set of gu’ment welfare hustlers trying to suck off the taxpayer’s teat, that’s how alt.spacers are going to be perceived.

  • David Davenport

    Let me again remind everyone that, regardless of who pays, money spent on elaborate ground facilities is money that will not be availible to spend on actual spacecraft.

  • David’s last comment is probably the only thing we agree on, but I emphatically agree with him on that. At least in the early stages of these projects, every penny not spent sending human-related payloads to the destination, at the lowest up front cost possible, is a penny wasted. We should worry about long-term costs when we have something to show for the money already spent on launch vehicles and ground infrastructure.

    — Donald

  • “Taxes are theft”?

    What a ridiculous statement. Taxes are necessary if a government is to operate on behalf of the people. One can easily debate the merits or fairness of particular types of taxes and how they are applied, but to compare them to a crime is stupid.

  • Mike Puckett

    “And yes, people generally think that spending is good and taxes are bad. Taxation is theft; spending is our due.”

    I will bet that New Mexico spaceport employs far more people than HST does.

  • Bill White

    Donald writes:

    At least in the early stages of these projects, every penny not spent sending human-related payloads to the destination, at the lowest up front cost possible, is a penny wasted. We should worry about long-term costs when we have something to show for the money already spent on launch vehicles and ground infrastructure.

    There is huge profit to be made catering to spectators and having a snazzy media image and you need a world class facility to do that. Sir Richard Branson knows perfectly well he will make more money from the Volvo ads and offering trips as frequent flier awards for his airline than he will selling tickets.

    Unless the destination has the trappings of “glamour” he will make far less money than he intends to make. Every baseball stadium needs parking revenues and beer sales and souvenir programs to turn a decent profit.

    Sub-orbital tourism will be no different.

  • Aaron Oesterle

    For anyone one who doesnt’ believe there isn’t serious money to be made
    1. 100 full price tickets have been sold – thats 20 million right there
    2. Recent market studies, by Zogby, found that there was significant money to be made – Go to hobbyspace.com to find out – or look for the futron coorporation
    3. This one I admit is a huge pill to swallow, but if its true, it will be the nail in the coffin to the idea that no money to be made in sub-orbital tourism – Branson has reported that he has recieved a downpayment from 38,000 people – and the required downpayment is $20,000 – Now I admit thats seems increadible, and I’d like to see a little proof, but, I know it was reported by a couple of news outlets, and if thats true, he has already made close to a billion dollars.

    “There gold in them thar space ships”

  • Bill White

    My understanding is that 38,000 people filled out a postcard or clicked a web form to say they were interested. In any event, there IS money to be made selling tickets. And there is MORE money to be made selling marketing space to Volvo, creating brand value and catering to spectators.

    If my siblings and I purchased a ticket for my father’s retirement, there would be one person flying and maybe 12 or 15 people (children, spouses and grandchildren) headed to New Mexico to watch and share the experience. Giving those people a better experience than standing on gravel eating box lunches is the key to selling suborbital to the masses.

  • Allen Thomson

    It is worth noting that, for the moment, what is being offered (reports differ a little, but not much) is three days of training on the ground followed a 2.5-3 hour airplane-like flight which features a rocket-boosted zoom to >= 100 km, 5-6 minutes of tethered (extensible seat belts, apparently) weightlessness, and a great view.

    One supposes that the circumstances during training will be made enjoyable.

  • Bill White

    Allen forgot the engraved certificates and medallians to confirm the customer as a genuine astronaut. That and a brazillion photos to plaster one’s office with.

  • David Davenport

    Are they going to build a new sports arena next to the spaceport?

    New Mexico needs a NHL franchise for vibrant economic development.