With U.S. job creation static while some in Washington consider “taxes” their favorite word, Air Transport Association of America (ATA) President and CEO Nicholas E. Calio sums up what he considers a job-killing equation: “Add taxes and lose jobs,” notes Grumpy Editor.
ATA is the industry trade organization for leading U.S. airlines.
Just in case ATA’s warning is not in your newspaper today, the organization points out nearly 10,000 airline industry jobs could be cut within one year if two new proposed passenger security and airline departure taxes are approved by Congress.
More broadly, adds ATA, nearly 181,000 jobs could be lost across the economy related to reductions in aircraft manufacturing, airports and supporting businesses.
The airline industry is the third greatest contributor to the U.S. economy after energy and farming, yet it is among the least profitable, says Calio.
“Tripling the passenger security fee and creating a new $100 departure tax will have a devastating effect on the U.S. economy and our customers, who already pay more in taxes for air travel than they do for alcohol, tobacco and firearms," cites Calio.
“The proposed new taxes will impact fares and reduce service, which equates to a one-way ticket to the unemployment line for thousands of Americans."
Calio declares, "The president is proposing a huge new tax on the least profitable and most highly taxed industry in the economy while all its competitors are left untouched. Airlines and their passengers should not shoulder the burden to pay for the country's security, or even worse, to pay off the national debt.”
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