Thirty Aviation Organizations Voice Opposition To Tax
Increases
A united aviation industry coalition of nearly 30 organizations
is opposing proposed tax increases, which would lead to significant
job loss across all sectors of the industry and the
nation. The coalition of airlines, general aviation,
manufacturers, consumer organizations and labor groups is sending a
unified message to Congress to reject the proposed taxes.
As part of its debt-reduction plan, the White House is proposing
- and the Congressional Super Committee is now considering - two
new initiatives on airlines and their passengers and general
aviation. The first would add a new $100 departure tax - which the
coalition says is disguised as a fee - to all flights, and the
second would double the existing passenger security tax to $5 per
one-way trip in 2012, and triple the tax to $7.50 by 2017.
"U.S. airlines, general aviation and aviation manufacturing
companies and their respective employees face intense competition
from the rest of the world. Our policymakers should be focused on
increasing U.S. international competitiveness rather than viewing
the industry as a collection agency," said ATA President and CEO
Nicholas E. Calio. "If we are to maintain global leadership and
increase jobs in this country, we need to ensure that tax policy is
focused on strengthening U.S. aviation leadership and furthering
the safety and modernization of the aviation system."
A growing bipartisan group within Congress opposes the
Administration's burdensome tax proposal. Nearly 120 members of the
House of Representatives recently told congressional leadership
that the $100 departure fee would have a "devastating impact on the
aviation industry and fails to achieve our shared goal of improving
the economy and creating jobs. The fee would cost airlines an
estimated $1 billion a year."
ATA President and CEO Nicholas
Calio
The letter also cites the devastating effect that the $100 per
flight fee will have on general aviation: "Imposing such a fee
would stifle the industry, as has been the case in other countries
where user fees have been put in place. General aviation is an
important contributor to our economy with 1.3 million jobs and $150
billion in economic activity every year."
Also this month, House Homeland Security Committee Chairman
Peter King (R-NY) told leaders of Congress' appropriation panels
that increasing the passenger security tax would hurt the industry
at a crucial time for the economy. "If Congress were to increase
the fee at this time, we would be hurting a vital sector of the
global economy," King wrote.
On behalf of the coalition, Calio commended lawmakers who are
rejecting the Administration's tax plan. "We have been meeting with
Members of Congress to convince them that further taxes on airlines
and their passengers should be rejected," Calio said.