The Biden administration is proposing to increase the fuel tax for executive aviation. The project aims to parity the taxes paid by commercial airline passengers.
Currently, airline passengers pay a special tax of 7.5% on each ticket and an additional fee of up to $4.50 per flight to support airport projects.
According to data published by Associated Press News, the US government allocated $22 billion to the Federal Aviation Administration (FAA). These funds were used to hire 2,000 new air traffic controllers and replace outdated FAA facilities.
Biden proposes gradually increasing the fuel tax from the current 0.22 cents per gallon to $1.06 over five years.
The Department of Transportation (DOT) supported the nation’s president’s project, arguing that this increase would help stabilize funding for airspace management. Currently, the bulk of this contribution is paid by airline passengers.
Furthermore, the DOT noted that 7% of flights managed by the FAA belong to the executive sector, yet the taxes collected represent only 1% of the federal aviation and airport trust fund. If this measure were implemented, the state could collect $1.1 billion over five years.
«I also want to end tax exemptions for big pharmaceuticals, major oil companies, private jets, and massive executive salaries,» President Biden told Congress.
The president of the National Business Aviation Association, Ed Bolen, stated, «Business aviation is an essential industry for the economy and transportation system of the United States.»
«It supports employment, connects communities, helps businesses succeed, and provides humanitarian assistance in times of crisis. It’s an industry that should be promoted, not vilified,» he added.
The price of aviation fuel ranges from $6 to $10 per gallon across the United States, according to data from AirNav.
If President Biden‘s proposal is enacted, considering today’s prices, the price of aviation fuel would increase to between $7 and $11 per gallon over the next 5 years, not to mention potential fuel price hikes during that time.
