Airlines for America (A4A) recently urged Congress to reject the tax increases on travel included in the White House’s proposed fiscal year 2020 budget.
Currently, there are 17 federal aviation taxes and fees. The proposed budget would implement increases over the next decade.
“The suggested tax hikes on travel would cost passengers an additional $2.9 billion annually on top of the $25 billion they already pay per year,” A4A said. “These are unnecessary tax increases that jeopardize the unprecedented choice, access and affordability that consumers enjoy today. Increasing taxes in any form would burden families with higher costs to fly, curtail job growth and limit air service options to small and rural communities.”
The proposals include increasing the Immigration Inspection User Fee from $7 to $9, increasing the customs inspection fee from $5.65 to $7.75, and increasing the passenger security fee from $5.60 to $6.60 in fiscal year 2020 and to $8.25 the following year.
The budget proposal also suggests establishing a discretionary user fee for the Animal and Plant Health Inspection Service Agricultural Quarantine Inspection predeparture program. This would generate approximately $20 million in 2020 and $212 million by 2030.
A4A also urges Congress to stop using security fee funds for deficit reduction.