FAA Financing: Issues and Options in Deciding to Reinstate or Replace the Airline Ticket Tax
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1997-02-04
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- Air traffic control
- Airlines
- Air transportation facilities
- Federal government agencies
- Taxes
- Fees
- Competition
- Alternatives analysis
- Airline competition
- Airline ticket tax
- Airport and Airway Trust Fund
- Alternative finacing
- Aviation economics
- Domestic competition
- Low fare airlines
- Small airlines
- User fees
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Abstract:On December 31, 1996, the government's authority to collect the taxes that finance the Airport and Airway Trust Fund, which has historically provided about three-quarters of Federal Aviation Administration's (FAA's) funding, lapsed. In December 1996, the General Accounting Office reported to Congress on the status of the Trust Fund and on a proposal by a coalition of the nation's largest airlines to replace the tax on domestic airline tickets, which has been the Trust Fund's primary source of revenue, with fees on domestic operations. This Congressional testimony by John H. Anderson, Jr., Director, Transportation Issues, Resources, Community, and Economic Development Division of the General Accounting Office discusses (1) status of the Trust Fund, (2) issues raised by the coalition's proposal, (3) potential effects of the coalition's proposal on domestic competition, and (4) potential competitive impacts of alternative options for financing FAA.
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Main Document Checksum:urn:sha-512:e826fedeff500800a4bd8714cab0e45e54b5128291946daa615b6ee39d72b20bc31b8cb58afadac4d6e0ef766bc9d0d259d607dc69e62d8590464dd473a5abb5