Thread: User Fees
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Old March 18th 05, 04:40 PM
Mike Rapoport
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"Dude" wrote in message
news

"Mike Rapoport" wrote in message
link.net...

"Paul kgyy" wrote in message
ups.com...
Support AOPA, they are our best protection against this. Economically,
I suspect that the tax money raised from our bugsmasher fuel usage
doesn't really cover the cost of service for FSS, VOR maintenance, ATC,
etc etc. But the result of fees will be that fewer people use the
system, which is part of the Law of Unintended Consequences.


The total revenue raised from the fuel tax is about $60 million. I do
not recall if this was for avgas alone or included GA jet fuel use too.
The cost of FSS is about $600 million (there is some dispute about this
figure). This information was in AOPA Pilot in the "Presidents Position"
section within the past year.

Mike
MU-2


Is the "fair share" argument what this is really about? The majors think
they are paying too much because their planes use more fuel?

We have had this discussion before, and I would rather not rehash it. If
we could get a better FAA by raising the fuel tax, I would support it. I
just want to know what the extra will actually get us. Otherwise, I would
just as soon see the whole thing go libertarian. All we in GA really need
are the GPS satellites, and a few gadgets. AMR, United, and the rest can
pack up and go home for all I care.


The argument is always framed as "fair share" but there is no way to agree
on what is fair. The framers of the argument twist the facts to support
their point of view. Clearly GA isn't paying for what it consumes since the
fuel tax doesn't even cover FSS. On the other hand, GA owners and pilots
pay income taxes and airlines do not.. On the third hand, while the
airlines don't pay income taxes (with the probable exception of Southwest),
they employ a lot of people who do and airline travel helps facilitate
economic growth which generates tax revenue.

When the time comes to collect the tax either through user fees or a fuel
tax the same "fairness" issues come around again. It doesn't cost any more
to provide ATC services to a larger airplane that burns more fuel, so a fuel
tax isn't "fair".

My personal point of view is that the airline business is inherently
unprofitable due to high fixed costs combined with the "tragedy of the
commons" problem. The industry will always be complaining and looking for
handouts from government. It is also apparent thatGA, taken alone, is
subsidized from the general fund but pilots are too pig-headed to
achknowlege it. This unwillingness to accept simple math is not unique to
pilots, medicare recipients don't achknowlege it either. As a point of
interest, almost everyone in our society (close to 90%) is paying less that
thier equal share of the cost of government.

Mike
MU-2