The above table illustrates the application of government-imposed taxes and fees on a hypothetical domestic itinerary. Taxes shown do not include those levied directly on the airline (e.g., income, property, franchise, sales/use, payroll, fuel).
Now, the government has decided that they want to add more to this list.
Air travel is one of the most heavily taxed activities in America. You would think it was a “sin” to travel. Heck, it seems to be more of a “sin” than drinking, smoking, shooting or driving.
Here is a list of “sin” taxes:
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Airline travel = 17-20%
Distilled Spirits = 11% (based on $20 sale price per 750ML bottle)
Tobacco = 10%
Smith & Wesson Centennial Revolver = 7%
Diesel = 7% (federal tax as of March 7, 2011)
Gasoline = 6% (federal tax as of March 7, 2011)
Beer = 5% (can of Budweiser)
Now, the administration as part of its “jobs package,” has proposed more taxes on airline travelers. They want to effectively double the security taxes we are paying to support TSA (and siphon off 60% of the monies collected into the general fund). Plus, a new $100 per jet flight tax has been proposed for jet aircraft that will only be passed down to consumers. (Of course, the jet tax was designed to hit corporate jets, but it will hit all jets the same whether they are corporate or commercial.)
These misguided tax efforts will only delay jobs creation (except for TSA agents) because it will depress airlines that are already barely scraping by, even with their pernicious fees.
Airlines are perhaps the most important form of transportation in the United States and the world. Airlines connect the domestic and international business world. They are responsible for billions of dollars of ancillary economic benefits in every community that they touch.
Airline passengers are the very ones who will be zipping across the country creating the jobs that this bill purports to encourage. Everyday citizens going on vacations create jobs at resorts, hotels, restaurants, rental car companies and shops across the country. At the very time that we are focused on creating jobs, this administration initiative is clearly counterproductive.
Rarely does ConsumerTraveler join together with the Air Transport Association, but we do on this occasion. Air travelers should not face extraordinary taxes. Go the www.stopairtaxnow.com site and let your congressman, congresswoman or Senator that you’ve had enough.
It is time for the administration to admit a mistake and take a step back. What do you readers think?
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
