Whats Wrong With The Airline Security Tax?
The groups assert the new security tax will kill jobs, economic growth and jeopardize local air service to small- and medium-size communities. Group leaders also argue that the federal government is breaking its 9/11 promise to pay for aviation security as a matter of national defense. U.S. airlines and travelers already will contribute $15.8 billion through 14 different federal taxes and user fees in 2005. The total tax burden represents 26 percent of a typical $200 roundtrip ticket, up from 7 percent 20 years ago. Of the $15.8 billion in total federal taxes and fees, U.S. travelers and airlines pay more than $3.2 billion in aviation security taxes. The new $1.5 billion security tax proposal, which raises the 9/11 security fee for air travelers from $2.50 to $5.50, would increase total security tax burden to $4.7 billion. This is the same amount airlines would spend to employ about 60,000 people or put in place 360,000 flights to U.S. communities. U.S. carriers are estimated to have l
