The long-considered airline passenger hikes have taken a new twist: Proposed tax hikes are now included in the President’s FY2021 (Fiscal Year) budget request.
As if airline passengers are not already being taxed to smithers, the thought of more taxes attached to your ticket is not a subject that many flyers embrace.
Airline Passenger Tax Hikes cost
If the suggested tax hikes are approved the hikes would come at an additional $2.7 billion per year. And, that’s on top of the $26 billion paid in passenger taxes last year!
Disappearing affordability of flying
The affordability of flying that so many passengers enjoy today could take a serious blow should the tax increase proposal go into effect.
Almost 90 percent of all Americans have flown on an airline. 42 percent of these passengers have family incomes amounting to less than $75,000 a year.Airlines for America (A4A)
How many taxes and fees are passengers currently subject to?
Did you know, as a passenger you are already subject to 17 (seventeen) federal aviation taxes and fees? So, brace for impact if additional taxes are levied!
What are the additional passenger taxes earmarked for?
The proposed additional $2.7 billion per year FY2021 budget request on federal aviation taxes and fees would be passed onto YOU.
Here is where some of your tax money would go:
Immigration (Inspection) User Fee (IUF) Increase
An increase of 29 percent, from $7 to $9. This is a passenger tax increase of about $376 million in FY2021, with a total increase of $2.2 billion between FY2021 and FY 2030.
TSA Passenger Security Fee Increase
An increase of 18 percent, from $5.60 to $6.60 in FY2021. Then an additional 25 percent, from $6.60 to $8.25, in FY2022. This is a passenger tax increase of about $618 million in FY2021 and $22.3 billion between FY2021 and FY2030.
Customs User Fee Increase (CUF)
An increase of 34 percent, from $5.89 to $7.89. This is a passenger tax increase of about $431 million in FY2021 and $2.4 billion between FY2021 and FY2030.
Airline Passenger Tax Hikes: Enough is enough?
Several professional aviation organizations have urged Congress to end the constant considering of airline passenger tax hikes.
Diversion of Security Fee Funds
As is often the “norm” among (bi-partisan) politicians A4A has now called on Congress to end the practice of using Security Fee funds to decrease the deficit. Money earmarked for your security is NOT being used for the security that you THINK you are paying for. Same-kind monetary diversion practice is also prevalent from the Customs and Border Protection (CBP) fees that you pay, per A4A.
Perhaps it’s time to contact the person you elected into the Federal government to let them know that enough is enough? How about fiscal responsibility? Or, perhaps you’re one of those people who just love paying more and more taxes and don’t mind that increasingly higher demand on your pocketbook? Just a thought.
Please send your comments here.
Featured Image: 37,000 feet. CaptainJetson.com