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

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

À propos de l'Association mondiale des voyages d'affaires
La Global Business Travel Association (GBTA) est la première organisation commerciale de voyages d'affaires et de réunions au monde. Son siège social est situé dans la région de Washington, DC et elle opère sur six continents. Plus de 9 000 membres de GBTA gèrent chaque année plus de $345 milliards de dépenses mondiales de voyages d'affaires et de réunions. GBTA et la Fondation GBTA offrent une éducation, des événements, des recherches, des plaidoyers et des médias de classe mondiale à un réseau mondial en pleine croissance de plus de 28 000 professionnels du voyage et 125 000 contacts actifs. Pour savoir comment les voyages d'affaires stimulent la croissance durable des entreprises, gbta.org