Wed, Sep 21, 2011
Says Increases Will Burden Passengers, Impact Demand, Cost
Jobs
The Air Transport Association of America (ATA), representing
leading US airlines, has joined the chorus calling on lawmakers to
oppose President Obama's proposals to impose a new $100 departure
tax on every flight and to triple the passenger security tax to
reduce the deficit. ATA predicts hiking aviation taxes would hurt
economic recovery, further burden airlines and customers and cost
jobs.
"We oppose any new taxes on airlines or their passengers," ATA
President and CEO Nicholas E. Calio (pictured) said. "We already
pay more than our fair share of taxes – more than the alcohol
and tobacco industries, whose products are taxed at levels to
discourage their use. Today, taxes and fees on a typical $300
round-trip ticket already account for more than $60 of the total
cost."
ATA says the industry's non-income tax burden has grown from
$3.7 billion in 1993 to approximately $17 billion today. In 2010, a
year in which the entire industry's profit was under $4 billion, US
airlines and their passengers contributed $3.4 billion in taxes and
fees to the Department of Homeland Security, including $2 billion
in taxes and fees to the Transportation Security Administration
(TSA) – a 50 percent increase from the amount collected in
2002.
"TSA costs are not all related to aviation. Yet, no other
industry or mode of transportation pays for its security as
airlines do, even though it is clear that the terrorists targeting
commercial aircraft are not attacking the airlines themselves but,
rather, the US economy and the American way of life," Calio
said.
"Since 9/11, the US airline industry has lost $55 billion and
160,000 jobs – over a third of its workforce. Adding to that
burden is not 'reform,' it is a jobs eliminator. The President's
proposals will significantly impact traveling consumers and give
yet another leg up to US carriers' foreign competitors. We should
advance a tax policy that encourages air service to grow, not
contract," added Calio. "Airlines are critical to the nation's
economic health. Commercial aviation drives more than $1 trillion
in economic activity and more than 5 percent of US gross domestic
product each year – and is responsible for more than 10
million jobs. Every 100 airline jobs support about 388 jobs outside
of the industry."
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