New Taxes Hitting Airlines and Flyers

Tax Professionals' Resource
December 11, 2013 — 1,637 views  
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The US government is planning to introduce new taxes on airlines and flyers that will result in a significant increase in the price of flying. The new taxes will be used to fund the TSA (Transportation Security Agency) and DHS (Department of Homeland Security). The taxes will increase the price of aviation which is already quite high.

Background

The TSA (Transportation Security Agency) is an agency that provides security and conducts regular checks on airline travelers and their luggage. In recent years, the agency has hired many new employees, numbering in the thousands, to increase the efficiency of their operations. As such, the government needs to raise funds as they need to pay salaries to the additional workforce.  The government is currently planning to raise the funds by way of taxes on airline fees and operations.

The Cost of Flying

Most Americans do not travel very frequently by flight. Only those with major business requirements fly more than twice a month. However, those who do fly have to bear the high cost of traveling by flight which has not decreased over the last few years. While on the other hand, the average salary of Americans has decreased because of the recent economic downturn.

The new taxes will further increase the prices of traveling by flight and might put them out of reach of the economically disadvantaged people. Some of the increased costs might have to be borne by the airline companies themselves.

Criticism and Discussion

The new taxes have been criticized by some members of Congress. The debate on the raise in taxes is still raging and might last for some more time. In the meanwhile, most airlines are already preparing to hike their prices in anticipation of the new tax.

Most Americans have very little say in the matter and will also have their options reduced. The airline industry is already controlled by a small number of companies that can easily make unilateral decisions. Their accountability to the public has already been questioned many times.

Conclusion

The TSA (Transportation Security Agency), a US government created agency, needs to hire more workers. Because of this, the government is planning a new round of taxes to raise additional funds. The taxes will be levied on the airline fees and will have to be borne by the airline companies and by individuals who wish to travel by flight.

Tax Professionals' Resource