Tue, Sep 18, 2007
Says Committee's Proposal For Funding FAA, NextGen Preserves
Proven Fuel Tax System
The National Business Aviation
Association (NBAA) stated its support Tuesday for Congressional
legislation to fund the Federal Aviation Administration (FAA) and
modernize the nation's aviation system through excise taxes, rather
than new taxes or untested user fees.
The legislation -- which was approved Tuesday by lawmakers on
the House of Representatives Ways and Means Committee -- was
produced as part of Congress's multi-year "reauthorization," or
funding process for the FAA.
"NBAA supports the legislation reported by the Ways and Means
Committee earlier today," said NBAA President and CEO Ed Bolen
(right). "While no one loves to pay taxes, the general aviation
community recognizes the importance of air traffic control
modernization. The fact that the Committee's bill dedicates the
additional tax revenues exclusively to modernization is very
significant.
"We applaud the Committee for rejecting user fees and instead
building upon a proven, stable, reliable and ultra-efficient system
of fuel taxes that clearly reflect aviation system use," Bolen
continued. "We believe this bill represents a key milestone in our
effort to transition to the Next Generation air traffic
system."
In testimony before Congress, Bolen has pointed out that user
fees are costly for governments to administer, requiring a large,
expensive bureaucracy.
Additionally, user fees come with an administrative burden for
operators -- the International Air Transport Association (IATA)
reports that it costs IATA members from $85 to $125 to process one
invoice.
NBAA also notes user fees can go up when industry can afford it
least: In 2002, when air traffic was depressed as a result of the
recession and terrorist attacks, Canada raised its user fees to
cover its declining revenues.
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