Air Ticket Taxes
In response to “Privatization Pitch: Better Way to Raise Revenue for Cities?†editorial, March 8:
“Capital airport projects are financed through an 8% passenger ticket tax; the FAA distributes these funds for expansion projects. . . .†Not! The Times should know better.
The ticket tax increased to 10% on Dec. 1, 1990, a 25% increase. This meant that Southwest Airlines and our customers paid over $100 million in ticket taxes in 1991, and we account for only 3% of the air travel in the U.S.! The proceeds go into the Aviation Trust Fund, which is intended to be distributed as you described. In reality, these funds often have been kept in surplus to offset the federal budget deficit.
As a partial solution to this, airports now have the authority to levy an additional head tax (officially a “passenger facility chargeâ€) of up to $12 per round-trip ticket for local construction projects. This in addition to airport landing fees, leases, fuel taxes and all other normal taxes (income taxes, school taxes, etc.,) paid by us just like everyone else. Any scheme to increase these payments should be scrutinized.
EDWARD SHELSWELL-WHITE
District Marketing Manager
Southwest Airlines, Los Angeles
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