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11-Feb-2016 11:05 AM

A4A rejects White House proposal to increase annual taxes for carriers, pax

Airlines for America stated (10-Feb-2016) it opposes a White House budget proposal, which suggests implementing an additional USD7.9 billion in annual taxes on airlines and their customers. Under the proposal, travellers would pay 26.5% of the ticket price in federal taxes, an "incredibly onerous and excessive burden on airline passengers" according to A4A. The White House budget also proposes to:

  • Increase the security tax from USD5.60 per one-way trip to USD6.60 in 2017, and increase it annually from 2018 to 2020 when it reaches USD7.50 per passenger. On average, this will cost passengers and airlines USD1.2 billion annually;
  • Reinstate the TSA aviation security infrastructure fee (ASIF) at its previous level of USD420 million annually;
  • Increase the customs tax from USD5.50 to USD7.50 and the immigration tax from USD7 to USD9, costing USD430 million annually;
  • An USD8 PFC will raise a USD2.3 billion;
  • The USD10/barrel oil tax translates in to a USD23.8 cents per gallon fuel tax and will raise an estimated USD3.5 billion.

A4A noted the nearly 35% increase in taxes on airlines and their customers is "both unnecessary and will stifle the investment, growth and innovation while curbing demand, which harms our economy." The organisation added, "There simply is no crisis in airport funding and no justification to hike airport taxes on the traveling." [more - original PR]

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