Airlines' Plan to Suspend Ticket Tax Faces Skeptical Lawmakers

Sanchez, Humberto
March 2003
Bond Buyer;3/25/2003, Vol. 343 Issue 31600, p5
Trade Publication
Lawmakers are apprehensive regarding an airline industry proposal to suspend the passenger ticket tax for one year in an effort to invigorate the nation's financially troubled air carriers, according to congressional aides. The proposal is “ going to be a difficult road to go ” said Sam Whitehorn, senior counsel to the Senate Commerce, Science, and Transportation Committee's aviation subcommittee, after addressing a meeting of the Airports Council International North America and the American Association of Airport Executives. Airport operators are concerned that a yearlong airline ticket tax moratorium would significantly reduce revenue going into the aviation trust fund — money, funded by the ticket tax and other fees, that is sometimes used to back tax-exempt bonds issued by airports to finance improvement and expansion projects. One way to make the tax relief proposal work would be to have the federal government pay an amount equal to the tax from the general fund.


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