U.S. Chamber Opposes G8-Proposed Airline Tax

WASHINGTON, D.C. – The United States Chamber of Commerce sent a letter to Treasury Secretary Snow expressing its opposition to a tax on airline tickets proposed at a recent Finance Ministers Conference of the Group of Eight industrialized nations (G8).

"While the goal of increasing aid for development around the world is a worthwhile function of government, taxing a vital, yet economically challenged industry to raise the money is short sighted," said Chamber President and CEO Thomas Donohue.

The G-8 plan would impose a tax on airline tickets in order to fund international developments projects in Africa, including climate change programs. The proposal was part of an overall package to forgive the debts of poor African countries.

Aviation is an essential part of the U.S. economy as it is central to bringing people, products and ideas together; but it is under enormous strain. Since 9/11, the airlines have struggled to regain passengers while facing the cost of security upgrades and ever rising jet fuel costs.

Many airlines are in Chapter 11 bankruptcy protection and many have been confronted with the possibility of having to file for bankruptcy. Imposing such a tax at this critical time would have disastrous effect on the health of the aviation sector and the overall economy. Many airlines in the U.S. and Europe have already expressed their opposition to it.

"This proposal will not strengthen the industry; rather it could contribute to its decline and threaten the well-being of the entire economy," said Donohue.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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A copy of the Chamber's letter to Secretary Snow is available online. http://www.supporttravel.com/portal/travel/default