GBTA and Travelers United to Congress: Don’t Tax Travel Again
Alexandria, VA (November 8, 2017) – Today, the Global Business Travel Association and Travelers United sent a joint letter to Congress urging opposition to a proposal that would increase the cap on the Passenger Facility Charge (PFC). In July, the Senate Appropriations Committee voted unanimously (31-0) to approve a proposal included in the FY2018 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Act, that would increase the cap on the PFC from $4.50 to $8.50. The estimated cost, $2.6 billion, would be levied on all travelers purchasing airlines tickets.
“This is yet another tax on the cost of doing business in the United States,” said Michael W. McCormick, GBTA executive director and COO. “It weakens the United States’ ability to compete in an increasingly competitive global market. It limits the return on investment on business travel – a proven economic driver contributing to GDP, jobs and wages. Additionally, this PFC increase adds an element of uncertainty for our members as they finalize their budgets for the next calendar year.”
GBTA research shows 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.
This is the second letter GBTA has sent to Congress regarding the PFC increase. Prior to consideration of the FY2018 THUD Appropriations Act, GBTA sent a letter to the Senate Appropriations Committee expressing concern regarding the unintended consequences of such a fee increase on the business traveler. GBTA continues to oppose PFC increases ensuring business travelers do not bear an undue burden from ever-increasing taxes and fees.
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About the Global Business Travel Association
The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA’s 9,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, gbta.org