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Lautenberg to Bush: Repeal your Plan to Raise Taxes on Flying Public!
Lautenberg Calls on Bush to Withdraw his Proposal to Hike Federal Taxes on Airline Tickets
Wednesday, February 09, 2005WASHINGTON, DC -- President Bush's budget proposal for Fiscal Year 2006 calls for a major tax increase on airline passengers, said United States Senator Frank R. Lautenberg (D-NJ). President Bush wants to increase the taxes passengers pay for an airline ticket by an additional $3.00. Passengers already pay nearly 20 percent in Federal taxes when purchasing a plane ticket.
For example, the tax burden on the average domestic round-trip base fare of $230.85 is currently $45.87 -- an effective tax rate of 19.9 percent. President Bush wants to increase these already high taxes.
"While millionaires are receiving massive tax cuts, President Bush wants everyday people who fly to pick up the tab for his Administration's budget woes," said Lautenberg. "It isn't fair that a small business person should have to be hit with more taxes on airline travel while giant corporations and their executives get a huge tax cut from President Bush. President Bush is using the smokescreen of his massive budget to hide this tax increase, but now that the fog has lifted, he needs to withdraw this awful idea."
Current Federal Taxes on Domestic Air Travel
Average Domestic Round Trip Fare:$230.85 Federal Excise Tax (7.5 %)$17.31 Federal Segment Tax ($3.20 @2.8 segments)$8.96 September 11th Security Fee ($2.50 @ 2.8 segments)$7.00 Passenger Facility Charge ($4.50 @ 2.8 segments)$12.60
Total Taxes (Before Bush Increase): $45.87
"President Bush spent the better part of last year scaring the American people that his opponent in the campaign would raise their taxes, and now one of the first things he proposes is a tax increase on millions of Americans," Lautenberg said. "Going back on his word right out of the gates in his second term should be a warning sign to the American people of what is to come."
Lautenberg's letter to the President is below:
February 9, 2005
GeorgeW. Bush President The White House Washington,DC 20500
The Americanpeople will be shocked to learn that you are proposing a major tax increase in the budgetyou presentedto Congresson Monday. Specifically,you are asking Congress to increase the airline passenger tax by an additional $3.00 per ticket. Such-a tax increase is an unacceptable burden on the traveling public given the enormous amount of federal taxes that passengers currently pay on airline tickets -nearly 20 percent of the base fare price.
I request that you publicly withdraw this proposed tax increase and direct your Administration not to seek its implementation.
The tax burden on airline passengers is already too much. For example, the federal tax on the average domestic round-trip base fare of $230.85 is $45.87 - an effective tax rate of 19.9 percent. The various federal passengertaxes pile up on one another: the Federal Excise Tax on top of the Federal SegmentTax on top of the September 11th Security Fee on top of the Passenger Facility Charge.
Your proposed tax increase on everyday Americans is especially troubling in the context of the major tax breaks for the richest Americans you have pushed through Congressin the past few years. This year alone, those tax breaks will reduce the tax bill of the average millionaire by over $100,000. Shiftingthe tax burden from millionaires to Americans who need to travel to see their children, grandchildren, other family members or small businesspartners is simply unfair.
I am one of the strongest advocates for more transportation security resources in Congress. But we cannot balance the budgeton the backs of the traveling public and small business people.
You campaigned on a message of fear that your opponent would raise taxes upon taking office. However, it turns out that the first act of your new term includes a proposal to raise taxes on millions of American families.
U.S. Senator Frank R. Lautenberg