Why are U.S. Airline Taxes so high?

The airlines are the highest taxed industry in the United States.  Why?  According to Airlines for America, there are 17 unique taxes and fees imposed by the federal government.  These include:

• Passenger Ticket Tax
• Flight Segment Tax
• Frequent Flyer Tax
• International Departure Tax
• International Arrival Tax
• Cargo Waybill Tax
• Commercial Jet Fuel Tax
• Noncommercial Jet Fuel Tax
• Noncommercial AvGas Tax
• LUST Fuel Tax
• Passenger Facility Charge
• September 11th Fee
• Aviation Security Infrastructure Fee
• APHIS Passenger Fee
• APHIS Aircraft Fee
• Customs User Fee
• Immigration User Fee

The taxes and fees listed above account for over twenty percent of your ticket cost.  That is more than alcohol (5%), tobacco (18.2%), and firearms (10%) in this country.  How can this be?  Why are there so many taxes and fees to fly in the United States?  Let’s look at some of the details:

The LUST fuel tax (stands for Leaking Underground Storage Tank) provides money to oversee and take corrective action against the owners of those leaking storage tanks.  Second, provides money to cleanup those sites when the owner is unwilling or unable to respond.  The September 11^th fee is $2.50 per passenger and directly goes to the TSA (Transportation Security Administration).  Passenger Facility Charges are up to $4.50 per passenger (determined by the local airport).  These charges can only fund federal projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition.  The Frequent Flyer Tax fee is imposed when redeeming miles for tickets.  For example, if a credit card company rewards you with miles, they must buy those miles from the airline and pay the 7.5% on top of the purchase price.  Where does this 7.5% go?  Well, they pass it along to you, the consumer.

Is anything being done to prevent the government from imposing more taxes?  Make the Connection is urging Congress to stop increasing/adding taxes.  According to their website, increasing air taxes would result in hundreds of thousands jobs lost.  How are we to compete globally when jobs are being lost in our own country due to its taxes?  The U.S. airline industry and its customers pay more than $17 billion in federal taxes every year.  Alcohol, cigarettes and firearms are taxed by the government to discourage their use.  Are we trying to discourage flying?  Make the Connection urges people to contact Congress directly; however, I think more has to be done.  If the U.S. airline industry expects to compete with global superpower Emirates, drastic changes need to be made.  In the United Arab Emirates, all airlines operating to and from Dubai do not have to pay local taxes.  Many consider that an unfair advantage, but if Dubai can do it, why not the U.S.?  Emirates Airlines is owned by the government of Dubai and has been responsible for paying taxes in all countries served since 1985.  Despite the rising fuel costs, Emirates continues to grow and make money.  Does the United States need to take a similar approach?  Can all the airlines be merged together as one owned by the U.S. government?  As of late, we have seen several airlines merge together:  Continental/United, Northwest/Delta, and US Airways/American (in recent talks).  Why not combine them all?  Then maybe, just maybe, there would not be so many taxes.