Senate Appropriations Committee Set to Vote on Massive Tax Increase for the Business Traveler

Alexandria, VA (July 26, 2017) – Yesterday, the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies voted to approve a proposal included in the FY2018 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Act, that would raise the Passenger Facility Charge (PFC) from $4.50 to $8.50. Michael W. McCormick, GBTA executive director and COO, sent a letter to the Senate Appropriations Committee expressing concern regarding the unintended consequences of such a fee increase on the business traveler. A copy of that letter can be found here. The Senate Appropriations Committee is expected to consider the proposal tomorrow.

“This is another example of how legislators are trading the word user fee for tax,” said Michael W. McCormick, GBTA executive director and COO. “But an increase in the PFC is just that, another tax increase. This precipitous hike in the PFC will result in a $3.2 billion tax increase on the business traveler. Business travel is an economic driver, which has an ROI that can be measured in jobs, sales receipts and state and local tax revenue. More taxes reduce the economic value of business travel.”

A study released this month by the GBTA Foundation, GBTA’s education and research arm, found that for every 1 percent change in business travel spending, the U.S. economy gains or loses 74,000 jobs, $5.5 billion in GDP, $3.3 billion in wages and $1.3 billion in taxes. Conversely, taxes and fees associated with travel have the opposite effect.

If enacted, the potential impact of the proposed PFC hike in the Senate FY2018 THUD Appropriations Act for 2018 is as follows:

A reduction of $2.74 billion of airline tickets sold in the United States
A decrease of $3.5 billion in U.S. GDP
Job loss by nearly 500,000 jobs

CONTACTO: Colleen Lerro Gallagher, +1 703-236-1133, [email protected]

Acerca de la Asociación Global de Viajes de Negocios
La Asociación Global de Viajes de Negocios (GBTA) es la principal organización comercial de viajes de negocios y reuniones del mundo con sede en el área de Washington, DC y operaciones en seis continentes. Los más de 9000 miembros de GBTA administran anualmente más de $345 mil millones de viajes de negocios globales y gastos de reuniones. GBTA y la Fundación GBTA brindan educación, eventos, investigación, defensa y medios de clase mundial a una red global en crecimiento de más de 28,000 profesionales de viajes y 125,000 contactos activos. Para aprender cómo los viajes de negocios impulsan el crecimiento empresarial duradero, gbta.org