Airlines slam Trump's $US2.9 billion aviation tax grab

Steve Creedy

By Steve Creedy Thu Mar 21, 2019

US airlines have hit out at proposed Trump Administration aviation tax increases they estimate will cost passengers an extra  $US2.9 billion a year. Aviation lobby group Airlines for America (A4A) has said the “unnecessary” tax increases in the 2020 budget would be in addition to the $US25 billion customers already pay each year into government coffers through 17 federal aviation taxes and fees. The increases include a rise in the Transport Security Administration passenger security fee from $US5.60 to $US6.60 in fiscal 2020 and from $US6.60 to $US8.25 starting in financial year 2021. READ: Atlanta still the world's busiest airport. A4A said this proposal would raise $US600m in FY2020 and $US22.4 billion between 2020 and 2029.
A proposal to boost customs user fees by $US2.10 to $US7.75 is expected to raise $US272 million in FY2020 and $US3.2 billion over 10 years. Similarly, a proposal to boost the immigration inspection fee from $US7 to $US9 will cost passengers $US273m in FY2020 and $US3.2 billion over a decade. And a new discretionary quarantine inspection fee would see passengers taxed a further $US20m in FY2020 and $US212m over 10 years, A4A said. “These are unnecessary tax increases that jeopardize the unprecedented choice, access and affordability that consumers enjoy today,’’ it said. “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.”
The lobby group also called on Congress to end the practice of diverting revenue from security fees away from security to pay for deficit reduction. The complaint echoes similar gripes in other countries. “Since 2013, approximately $1.3 billion per year in TSA fees are being diverted away from their intended purpose, which is to pay for aviation security screening,’’ A4A said. “Similar diversions have also been used for CBP fees. Instead of increasing taxes, there should be a focus on addressing the annual diversion of billions of dollars of security funds.”  
 

Have questions or want to share your thoughts?

Comments

No comments yet, be the first to write one.

Latest news and reviews

View more
China Southern business class review: Guangzhou to Perth direct
Airline News

China Southern business class review: Guangzhou to Perth direct

Oct 5, 2026

Sharon Petersen and Sandy West
Vietjet named Asia Low Cost/Hybrid Airline of the Year by CAPA
Airline News

Vietjet named Asia Low Cost/Hybrid Airline of the Year by CAPA

Oct 5, 2026

Airline Ratings
Jetstar Japan Review: What to Expect from Japan’s Low-Cost Airline
Airline Ratings review

Jetstar Japan Review: What to Expect from Japan’s Low-Cost Airline

Oct 3, 2026

Josh Wood
Deliberate pilot actions such as on flydubai flight responsible for 20-30% of major disasters
Airline News

Deliberate pilot actions such as on flydubai flight responsible for 20-30% of major disasters

Oct 1, 2026

Sharon Petersen

Featured articles

View more
China Southern business class review: Guangzhou to Perth direct
Airline News

China Southern business class review: Guangzhou to Perth direct

Oct 5, 2026

Sharon Petersen and Sandy West
Is HK Express the Best Low-Cost Airline for Food and Shopping?
Airline News

Is HK Express the Best Low-Cost Airline for Food and Shopping?

Sep 17, 2026

Airline Ratings
Deliberate pilot actions such as on flydubai flight responsible for 20-30% of major disasters
Airline News

Deliberate pilot actions such as on flydubai flight responsible for 20-30% of major disasters

Oct 1, 2026

Sharon Petersen
United Airlines older Polaris better than you think
Airline Ratings review

United Airlines older Polaris better than you think

Sep 25, 2026

Airline Ratings