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Lawmakers criticize proposed taxes on flight takeoffs

By Keith Laing - 10/07/11 05:03 PM ET

More than 100 House members have signed a letter to the leaders of Congress and the deficit supercommittee to bolster the airline industry's opposition to President Obama's proposal to increase taxes on flights to reduce the federal deficit.

Obama has called for a per-takeoff fee on flights that could run as high as $100 as part of the deficit-reduction suggestions he made recently to the supercommittee. That panel is tasked with recommending $1.5 trillion or more in cuts from the federal deficit by Thanksgiving.

The Washington, D.C.-based Air Transport Association launched a campaign against the proposal, and Friday, the organization circulated a letter to House Speaker John Boehner (R-Ohio), Senate Majority Leader Harry Reid (D-Nev.) and supercommittee co-chairmen Rep. Jeb Hensarling (R-Texas) and Sen. Patty Murray (D-Wash.).

The letter, which calls for lawmakers to ground the takeoff tax proposal, is signed by 119 House members.

"Imposing a new fee on the aviation industry in order to raise revenue would have a devastating impact on the aviation industry and fails to achieve our shared goal of improving the economy and creating jobs," the lawmakers argue in the letter.

"Commercial aviation is responsible for more than 10 million jobs and $1 trillion in economic activity," the letter continues. "Today it is facing high fuel costs and a slow economy. The proposed flight departure fee would cost the airlines $1 billion a year. We should not put significant new costs on commercial airlines."

The lawmakers also argued against implementing the fees on private fights, which have been a frequent target of President Obama and Democrats in Congress.

"The House has rejected previous proposals regarding user fees on general aviation, and we should do so again this time," the letter says. "Imposing such a fee would stifle this industry, as has been the case in other countries where user fees have been in place.

"General aviation is an important contributor to our economy, with 1.3 million jobs and $150 billion in economic activity each year."

The president's plan also includes a $7.50 increase in the security taxes passengers pay each way on trips.


Source:
http://thehill.com/blogs/transportation-report/aviation/186319-lawmakers-criticize-proposed-taxes-on-flight-take-offs
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