Fri, Dec 13, 2013
Fee To Increase 124 Percent If The Deal Goes Through
The budget deal worked out between Republican Congressman Paul Ryan (pictured, right) and Democratic Senator Patty Murray (pictured, left) would boost a tax paid by airline passengers by 124 percent to fund the TSA.
The two lawmakers chair the budget committees in their respective houses of Congress.
Under the agreement, the tax would rise from the current $2.50 each way to $5.60 ... or $11.20 for a round-trip ticket. That would be 60 cents more than was actually requested by the Department of Homeland Security.
ABC News reports that the tax increase would help TSA offset about 43 percent of its security costs and replace the aviation infrastructure security fee currently charged to airlines.
Airlines for America (A4A) spokeswoman Katie Connell told ABC news that it is the organizations position that airline passengers are already over-taxed. A4A president Nicholas Calio has said in the past that Congress should focus on improving the efficiency of TSA, which collected some $2.3 billion in taxes from carriers and passengers last year. That amount has doubled since 2002, he said.
House Budget Chair Ryan (R-WI) defended the deal saying in a statement posted on his website that "We’ve cut spending in a smarter way. And we’ve made it clear: Tax hikes aren’t an option. We’ve said budget talks should be about how Washington can live within its means, not how families should pay more. For conservatives, this agreement shows we can make Washington work — and on our own terms. It’s not perfect. But it’s a start. And I ask all my colleagues in the House to support it."
"Putting aside the rhetoric, a tax by any other name is still a tax," said Michael W. McCormick, COO of the Global Business Travel Association. "Under the proposed budget, business travelers will share the burden of a billion dollars in new aviation security taxes. To aggravate the damage to business travel and U.S. businesses' ability to conduct business effectively, the additional revenue will not be used to fund programs that benefit travelers. Enough is enough – business travelers are not bottomless piggy banks. Punishing a key driver of economic growth is the wrong approach. GBTA urges Congress to reject an increase in the aviation security tax."
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