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
CONTATO: Colleen Lerro Gallagher, +1 703-236-1133, [email protected]
Sobre a Global Business Travel Association
A Global Business Travel Association (GBTA) é a principal organização comercial de viagens de negócios e reuniões do mundo, com sede na área de Washington, DC, com operações em seis continentes. Os mais de 9.000 membros do GBTA gerenciam mais de $345 bilhões de despesas globais com viagens e reuniões de negócios anualmente. GBTA e a Fundação GBTA oferecem educação, eventos, pesquisa, advocacia e mídia de classe mundial para uma rede global crescente de mais de 28.000 profissionais de viagens e 125.000 contatos ativos. Para saber como as viagens de negócios impulsionam o crescimento duradouro dos negócios, gbta.org