A4A Rejects White House Proposal to Hike Taxes on Air Travelers
11 February 2016 - 10:53AM
Business Wire
White House budget proposes an additional $7.9
billion in annual taxes on airlines and their customers
Airlines for America (A4A), the industry trade organization
for the leading U.S. airlines, today issued the following
statement opposing the FY 2017 White House budget proposal, which
would drive up the federal tax burden on airlines and their
customers by an additional $7.9 billion per year, up from the more
than $22.6 billion they pay today.
Currently, travelers pay $63 in federal taxes, or 21
percent of a $300 one-stop, round-trip domestic ticket. If the
Administration’s proposed budget were passed, it would increase the
federal tax amount to nearly $80, or 26.5 percent of the ticket
price – an incredibly onerous and excessive burden on airline
passengers. Revenues from airlines and their customers should not
go towards deficit reduction or any other non-travel related
expenses.
“U.S. airlines are vital to the health of our nation’s economy,
and the flying public should not be asked to foot the bill for
deficit reduction,” said A4A. “We urge Members of Congress to
continue holding the line against unnecessary tax hikes that drive
up the cost of travel for the 2 million passengers who fly on U.S.
airlines every day.”
A nearly 35 percent increase in taxes on airlines and their
customers is both unnecessary and will stifle the investment,
growth and innovation while curbing demand, which harms our
economy.
The FY2017 budget proposal doubles down on previous calls from
the Administration for a nearly 80 percent increase of the
Passenger Facility Charge, also known as the airport tax - which
Congress has rightfully rejected. A4A noted its strong support for
infrastructure improvements, but called the increase unnecessary
because airports are in strong financial condition and continue to
have ample funding resources without forcing passengers to pay more
for simply using the airport.
“There simply is no crisis in airport funding and no
justification to hike airport taxes on the traveling public,” A4A
added.
The White House budget also proposes to:
- Increase the security tax from $5.60
per one-way trip to $6.60 in 2017, and incrementally increase it
annually from 2018 to 2020 when it reaches $7.50 per passenger. On
average, this will cost passengers and airlines $1.2 billion
annually.
- Reinstate the TSA Aviation
Security Infrastructure Fee (ASIF) at its previous level of
$420 million annually.
- Increase the customs tax from $5.50 to
$7.50 and the immigration tax from $7 to $9, costing $430 million
annually.
- An $8 PFC will raise an incremental
$2.3 billion.
- The $10/barrel oil tax translates into
a 23.8 cents per gallon fuel tax and will raise an estimated $3.5
billion.
ABOUT A4A
Annually, commercial aviation helps drive nearly $1.5 trillion
in U.S. economic activity and more than 11 million U.S. jobs.
Airlines for America (A4A) vigorously advocates on behalf of the
American airline industry as a model of safety, customer service
and environmental responsibility and as the indispensable network
that drives our nation’s economy and global competitiveness.
America needs a cohesive National Airline Policy that will
support the integral role the nation’s airlines play in connecting
people and goods globally, spur the nation’s economic growth and
create more high-paying jobs. A4A works collaboratively with the
airlines, labor groups, Congress and the Administration to improve
air travel for everyone.
For more information about the airline industry, visit our
website airlines.org and our blog, A Better Flight Plan, at
airlines.org/blog.Follow us on Twitter: @airlinesdotorg.Like us on
Facebook: facebook.com/AirlinesforAmerica.Join us on Instagram:
instagram.com/AirlinesforAmerica.To learn how you can support a
National Airline Policy, a better flight plan for everyone, visit
www.nationalairlinepolicy.com.
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Airlines for AmericaVaughn Jennings, 202-626-4209