GBTA: Travelers May Dodge Tax Bullet

cashA decision by the House Appropriations Committee to reject new fees on  travelers and fully fund the Next Generation Air Transportation Systems (“NextGen”) may allow travelers to dodge a tax bullet, reports the Global Business Travel Association (GBTA). GBTA executive director and COO Michael W. McCormick said business travelers already carry a heavy burden of fees and taxation and the proposed increase in Passenger Facility Charges to $8 for every passenger could have been the "proverbial straw that broke the camel’s back.”  

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“GBTA’s membership thanks chairmen Harold Rogers (R-KY) and member Tom Latham (R-Iowa) for recognizing that business travelers already carry a heavy burden of fees and taxation. GBTA research showed fees levied on travel-related services last year increased the total tax bill for business travelers by 58 percent."

"Supporting the Administration’s request to increase Passenger Facility Charges to $8 for every passenger on top of last year’s doubled TSA fee, could have been the proverbial straw that broke the camel’s back," McCormack said. “GBTA is pleased with the continued investments in the FAA and NextGen, which will help ease congestion in the skies, reduce delays and continue to keep the U.S. economy moving.” The House Appropriations Committee released the fiscal year 2015 Transportation, funding bill that includes funding for the Department of Transportation.

The bill fully funds the FAA’s Next Generation Air Transportation Systems (NextGen) at $852.4 million.

"These investments will help ease future congestion and help reduce delays for travelers in U.S. airspace. In addition, the bill rejects the Administration’s proposals for new passenger facility and general aviation fees," the committee said in a statement. Action by the full House is expected.

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