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.

FMI: www.stopairtaxnow.com