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Industry Groups Warned Of Likely Tax Hike
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From The Weekly of Business Aviation 2007 March
Sen. Trent Lott (R-Miss.) last week put the aviation industry on warning that aviation users likely will face a tax increase as Congress begins to move forward on a bill that would reauthorize the Federal Aviation Administration and modernize the air traffic control system. "We all agree that we have to modernize....We all agree that we need more money. You all are saying 'no not me.' None of you want to pay more, and that's just not the way it's going to happen," Lott, the ranking Republican on the Senate aviation subcommittee, said during a hearing Thursday on FAA's reauthorization proposal. Thursday's hearing was the second that the subcommittee has held on FAA reauthorization. Last week's session focused on the industry perspective, while the first hearing, held in mid-February, covered the FAA proposal from the Bush Administration's perspective (BA, Feb. 19/81). National Business Aviation Association President and CEO Ed Bolen continued to build general aviation's case against FAA's user fee proposal, and instead urged the committee to focus on ATC modernization and system capacity. "This FAA/airline bill is not a modernization bill," Bolen said, noting that the FAA proposal would cut funding, cap the General fund contribution below current levels and divert money for ATC modernization to collecting and assessing user fees.
© 2009 McGraw-Hill Companies, Inc. (The)
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