Passengers already pay airport taxes to support all airport operations – enough!
For years, Travelers United has stood firmly against increased taxation of airline passengers.
Who are the real airport users?
Airport officials and committee members asked me, “What don’t you understand about user fees?” My answer is, “Who uses the airport more? Passengers who may fly in and out several times a month, or nearby business and property owners who benefit from the airport’s ‘economic engine’ and use it 24/7?”
Most remain silent.
Basically, airports and local businesses have convinced Congress that taxing travelers is the fairest way to share the funding pain. But, the appropriate solution is to spread taxation across a larger segment of airport users rather than just passengers, who often have no representation in local legislatures.
It’s always easier to tax those who can’t resist, rather than look the voters in the eye and tell them you’re taking away their hard-earned money.
domestic Airline travel is at an all-time high.
Airports are investing heavily in refurbishing facilities to meet the needs of the new era of transportation and improve the passenger experience. Passengers and other users pay taxes to fund capital projects, and contribute approximately $6.7 billion and more annually to airport improvements.
The airport community and Congress want to increase the passenger convenience fee (PFC) that is added to the price of every airline ticket. This would be a stealth tax increase – which would have a direct impact on passengers in the form of higher ticket prices. A family of four will be forced to pay $104 in this extra secret tax alone for a round-trip flight.
While airports, airlines and Congress alike are interested in upgrading the nation’s facilities, any legislation imposing additional taxes on travelers to fund such projects should not move forward. Congress should require municipalities and businesses that directly benefit from airport activity to pay their fair share of taxes. Increasing PFC is not the answer.
Airports are wonderful economic engines with abundant wealth.
Airports are more than just runways and terminals. They play a valuable role in employment generation and development of local communities. However, the municipalities and local businesses that benefit most from the airport-driven economy pay only a nominal amount. Passengers pay for almost the entire airport’s operating budget. Passengers not only pay PFC, but are also taxed to finance the Airport Improvement Fund.
The Airport and Airway Trust Fund (AATF) is also funded by passengers. In sharp contrast to the insolvent Highway Trust Fund, it has an uncommitted balance. The Congressional Budget Office estimates that this funding will continue to grow into a record for the industry. Also, much of the previous 9/11 security fee increase, which could have been used to make the lines more manageable, has been hijacked to pay off the federal budget debt.
Instead of taking more money out of the pockets of overburdened passengers, Congress must first spend the money that is already in the bank.
Passengers ultimately pay for almost all airport operations.
Passengers pay take-off and landing fees to the airline. Commuters also pay surcharges for taxis and ride-sharing operations. They pay extra for all purchases in airport stores as well as additional fees for parking. And, their taxes are used to pay off local municipal debt incurred to build the airport.
I have never met a traveler who thought they should pay more taxes to use the airport. The truth is, they are right. American travelers have already used their hard-earned money to fund billions of dollars in airport renovations.
The committee has suggested increasing taxes on passengers. This is ignoring other players in the ecosystem who benefit from the country’s airports. If more is needed, it is time for others who directly benefit from airport development. Congress should look to surrounding municipalities to address any unmet infrastructure needs.
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Charlie Leocha is president of Travelers United. He has been in Washington, DC for the past 14 years working with Congress, the Department of Transportation and industry stakeholders on travel issues. He was the first consumer representative on the Aviation Consumer Protection Advisory Committee appointed by the Secretary of Transportation from 2012 to 2018.
