A4A Rejects White House Proposal to Hike Taxes on Air Travelers

Business Wire-WASHINGTON–(BUSINESS WIRE)–Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, today issued the following statement opposing the FY 2017 White House budget proposal, which would drive up the federal tax burden on airlines and their customers by an additional $7.9 billion per year, up from the more than $22.6 billion they pay today.

Currently, travelers pay $63 in federal taxes, or 21 percent of a $300 one-stop, round-trip domestic ticket. If the Administration’s proposed budget were passed, it would increase the federal tax amount to nearly $80, or 26.5 percent of the ticket price – an incredibly onerous and excessive burden on airline passengers. Revenues from airlines and their customers should not go towards deficit reduction or any other non-travel related expenses.

“U.S. airlines are vital to the health of our nation’s economy, and the flying public should not be asked to foot the bill for deficit reduction,” said A4A. “We urge Members of Congress to continue holding the line against unnecessary tax hikes that drive up the cost of travel for the 2 million passengers who fly on U.S. airlines every day.”

A nearly 35 percent 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.

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