More air taxes unacceptable says airline body

Calcutta News.Net
Saturday 16th July, 2011

The Air Transport Association of America (ATA), the industry trade organization for the leading US airlines, has called on lawmakers to drop proposals to increase aviation passenger taxes.

ATA has said proposals by the government to address the national debt limit with a tax increase, would slow economic recovery, further burden customers and cost jobs.

ATA President and CEO Nicholas E. Calio has said: "We oppose any increase in aviation passenger taxes. The industry already pays more than its fair share of taxes - more than alcohol and tobacco products that are taxed at levels to discourage their use. Today on a typical $300 round-trip ticket, passengers already pay $63 in taxes and fees."

He complained: "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 U.S. economy and our way of life. This is absolutely unacceptable; we should advance a tax policy that encourages air service to grow, not contract."

The industry's non-income tax burden has grown from $3.7 billion in 1993 to approximately $17 billion today.

In 2010, U.S. 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 - a 50 percent increase from the amount collected in 2002.

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