Why are taxes so high on air travel?Author: DanPoynter | Category: Travel Tips
The tax bite on a typical domestic ticket has nearly tripled to $61 from $22 in 1972.
The United States has a 35% federal corporate tax rate, the second-highest in the world behind Japan.
But not all businesses are created equal when it comes to taxation.
There are a few industries—and their customers—that pay more than their fair share: alcohol, tobacco, gambling and airlines. Yes, airlines.
Most Americans have no idea that their air travel is taxed at the same excessive level as products and services that are taxed to discourage their use.
Putting aviation in the “sin tax” bracket is absurd, given airlines’ beneficial—indeed, essential—role. Where would we be without airlines? Grounded, as a nation and as a player in the global economy.
The trend of over-taxation is counterproductive—a punitive burden on airline customers and the overall economy.
These are resources that could be better spent making air transportation more efficient and putting more people to work.