Airlines for America (A4A) has opposed the FY 2016 White House budget proposal, citing several unnecessary tax increases, most notably a dramatic hike of the passenger airport tax (Passenger Facility Charge (PFC)) from $4.50 to $8.
Under this budget proposal, a family of four taking one round trip could pay up to $128, versus $72 presently – a $56 increase. Together, the proposals will raise an additional $3.8 billion per year in taxes on airlines and their customers, up from the more than $20 billion they pay today.
“Airlines drive the economy and create jobs. With our nascent economic recovery, we should be doing everything we can to bolster those industries that enable commerce, like airlines, rather than adding unnecessary burden to airline customers who are already paying their fair share”
Currently, travellers pay $63 in federal taxes, or 21 percent of a $300 one-stop, round-trip domestic ticket. If the Administration’s proposed budget were passed, it would increase the federal tax amount to $77, or 26 percent of the ticket price – an incredibly onerous and excessive burden on airline passengers.
Most egregious is the nearly 80 percent increase of the PFC, effectively a passenger airport tax, paid for every departure. A4A called the increase unnecessary because airports have ample funding resources without dramatically increasing a tax on airline passengers.