Chicago Sun-Times
The scoop from Washington

Obama proposes higher fees for airport security in deficit package

| No Comments

WASHINGTON--President Obama is proposing raising the fee passengers pay for airport security, according to the document the White House released on Monday.

Obama is asking Congress to "remove the current statutory fee limit and replace it with a statutory fee minimum
of $5.00, with annual incremental increases of 50 cents from 2013 to 2017, resulting in a fee of $7.50 in 2017 and
thereafter." He is also asking lawmakers to "allow the Secretary of Homeland
Security to adjust the fee (to an amount equal to or greater than the new statutory fee minimum) through regulation when necessary."

click below for proposal...

Below, from the White House...

Modeled after Chairman
Paul Ryan's proposal in the House's 2012
Concurrent Resolution on the Budget, the
Administration's proposal would:
• Replace the current "per-enplanement"
fee structure with a "per one-way trip"
fee structure so that passengers pay the
fee only one time when travelling to their
destination.
• Remove the current statutory fee limit
and replace it with a statutory fee minimum
of $5.00, with annual incremental
increases of 50 cents from 2013 to 2017,
resulting in a fee of $7.50 in 2017 and
thereafter.
• Allow the Secretary of Homeland
Security to adjust the fee (to an amount
equal to or greater than the new statutory
fee minimum) through regulation
when necessary.
• Set aside a specific amount of fee revenue
to be returned to the General Fund for
deficit reduction over 10 years.
The proposed fee would collect an estimated
$8.8 billion in additional fee revenue over
five years, and $24.9 billion over 10 years. The
Administration's proposal would direct $15
billion to be deposited into the General Fund
for debt reduction, with any additional revenues
in excess of this amount being applied as
offsets to TSA's discretionary appropriations.
More equitably share payments for air
traffic services. Roughly two-thirds of the
air traffic control system's current costs are
financed by aviation excise taxes. Most of the
tax revenue is collected from commercial aviation
through ticket taxes, segment fees, international
head taxes, and fuel taxes. General
aviation users currently pay a fuel tax, but this
revenue does not cover their fair-share-use of
air traffic services. All flights that use controlled
air space require a similar level of air
traffic services. However, commercial and general
aviation can pay very different aviation
fees for those same air traffic services. For exMANDATORY
SAVINGS 23
ample, a large commercial aircraft would pay
between $1,300 to $2,000 in taxes for a flight
from Los Angles to San Francisco while a corporate
jet flying the same route and using the
same Federal Aviation Administration (FAA)
air traffic services would pay about $60 in
taxes. To reduce the deficit and more equitably
share the cost of air traffic services across the
aviation user community, the Administration
proposes to establish a new mandatory surcharge
for air traffic services. This proposal
would create a $100 per flight fee, payable to
the FAA, by aviation operators who fly in controlled
airspace. Military aircraft, public aircraft,
recreational piston aircraft, air ambulances,
aircraft operating outside of controlled
airspace, and Canada-to-Canada flights would
be exempted. The revenues generated by the
surcharge would be deposited into the Airport
and Airway Trust Fund. This fee would generate
an estimated $11 billion over 10 years.
Assuming the enactment of the fee, total
charges collected from aviation users would finance
roughly three fourths of airport investments
and air traffic control system costs.

Leave a comment

Get the Sweet widget

More widgets

Video

Lynn Sweet

Lynn Sweet is a columnist and the Washington Bureau Chief for the Chicago Sun-Times.

Stay in touch

About this Entry

This page contains a single entry by Lynn Sweet published on September 19, 2011 10:51 AM.

Obama's $3 trillion deficit plan: Details here, all 80 pages was the previous entry in this blog.

Don't Ask, Don't Tell ends Tuesday is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.