The aviation trade group, Airlines for America (A4A), is advising Congress to throw out tax increases proposed as part of the Trump Administration 2021 budget. The tax hikes would mean airline passengers pay an extra US $2.7 billion per year on the US $26 billion they paid in 2019. The group says that’s an inflation busting increase of more than 10 percent.

They say the US aviation industry and its customers are already hit with 17 federal aviation taxes and fees therefore
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.

“This proposal would increase taxes on passengers by an estimated $US 618 million in FY2021 and $US 22.3 billion between FY2021 and FY2030.”

Breaking down the costs, A4A says the customs fee increase would see a 34% increase, and the immigration fee would go up 29%.

“Since 2014, approximately $1.3 billion per year in TSA fees has been diverted away from its intended purpose, which is to pay for aviation security screening. Similar diversions have also been used for Customs and Border Protection fees.”

“Instead of increasing taxes, there should be a focus on addressing the annual diversion of billions of dollars of security funds, the trade group added.