FlyerTalk Forums - View Single Post - President proposes increasing taxes on air tickets to pay for security
Old Jan 28, 05, 9:29 am
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Join Date: Sep 2002
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Here is the current breakdown:

* federal excise tax on tickets of 7.5 percent,
* federal flight segment tax of $3 per segment,
* federal security surcharges of $2.50 per segment (up to $5 each way),
* airport passenger facility charges of $4.50 maximum per segment (up to four charges per round-trip ticket),
* international arrival and departure taxes ($13.40 each), INS ($7) and Customs fees
*agricultural inspection fees of $3.10

The burden, as a percentage, is higher on a low fare ticket than on a high fare ticket.

Let's not forget how the ticket tax structure has been abused for years. About the only tax collected on a ticket that is actually mandated to go towards aviation system improvements at the local level is the PFC.

The Federal tax on the ticket has gone into a trust fund for the aviation infrastructure that was turned into a big checking account for Congress to fill missing appropriations on everything from roads to playgrounds to social security. Only recently was that process tightened up to make sure that money was properly distributed to aviation projects, through programs like AIR21/AIP/ACIP.

I have not seen any clear-cut accounting of how the currently collected security fee is being spent, and given the already reported despicable acts of waste by the TSA, I am sure very little of it is going to improve screening and security - in fact, I have seen nothing invested except the larger intense-baggage scanners. Where and how is all the money being spent that was collected at $10/round trip?

No additional increases in the tax are justified until we have strong legislation in place which mandates how all this money is spent and accounts for it (requiring public budgets published by the TSA and subject to audit scrutiny).
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