Sunday, December 22, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, December 13, 2013
Airline Fees: The Budget Deal's Sneaky Tax Increases
By Heritage Foundation @ 2:10 PM :: 6467 Views :: Taxes, Tourism

The Budget Deal's Sneaky Tax Increases

by Rob Bluey, Heritage Foundation, December 13, 2013

The congressional budget deal includes some “user fees.”

For the Washington establishment, that’s apparently the politically correct way of telling Americans they’ll be paying more to the federal government. For the rest of us, it’s a tax increase.

The Ryan-Murray budget deal, which passed the House on a 332-94 vote, includes a number of “fee” increases. One would make flying more expensive. Travelers are currently charged $2.50 per flight under the Transportation Security Administration’s airline security “fee.” Under the budget deal, that would increase to $5.60 per flight or $11.20 for a round-trip ticket.

Supporters of the deal are claiming this isn’t a tax increase—but take a look at your airline receipt. The airline security charge is just one of the taxes you’ll see. According to Delta Airlines, there’s also the Domestic Transportation Tax (7.5 percent), Travel Facilities Tax ($8.40), and U.S. International Transportation Tax ($17.20). These are all considered taxes.

When asked if the “user fees” were a code name for a tax increase, Representative Tom McClintock (R-CA) explained it this way: “I happen to believe once government spends a dollar they have decided to tax that dollar. The only question is when and by what means.”

MB-12.13 700px

Facebook - Share on Facebook

And in the case of this airline security fee increase, the money isn’t even going back to the TSA to fund or improve security. Instead, as Heritage’s Cassandra Lucaccioni explained, “it will be deposited annually into a general fund of the Treasury.”

Not all government user fees are problematic. If they’re used to provide services to distinct groups of individuals or specific businesses or industries, they might make sense. That’s not what’s happening here.

“If a higher fee does not directly cover the cost of a government service and instead goes to pay for more spending, then it is akin to a tax increase,” said Curtis Dubay, Heritage’s senior tax policy analyst. “The budget deal uses the higher fees to cover the cost of more spending; hence it is essentially a tax hike.”

Taxpayers are tired of Washington’s gimmicks and games—and conservatives on Capitol Hill shouldn’t fall for this sneaky wordplay. The $63 billion spending hike in the Ryan-Murray budget has to come from somewhere.

Only in Washington could something like this fly. The American people shouldn’t buy it—or, in this case, pay for it.

Read the Morning Bell and more en español every day at Heritage Libertad.

Quick Hits:

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii