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GA's "fair share"



 
 
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  #1  
Old November 4th 05, 06:29 PM
Skylune
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Default GA's "fair share"

Current contribution is shown below. Increased AVGAS tax rates or user
fees are a given!

http://www.house.gov/transportation/...04-05memo.html

  #2  
Old November 4th 05, 06:44 PM
Skylune
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Default GA's

Here's what your new buddy Norm Pinetta recently said in a different forum:
“[i]t is clear … that the current level of [GA] tax payments does not cover
the costs GA imposes on the FAA.” Like I said before, this guy really
knows his audience!

For those who will conclude I am making this up, here is the article,
containing the above quote.

GA Fees Don't Come Close to Covering Costs
General aviation contributes about 2 percent of all user contributions


The following column appears today in the May 28 edition of Aviation
Daily, in its "Departures: Opinions on Current Issues in Aviation"
featu

By Jim May, President and CEO, Air Transport Association

MAY 28 – Questions raised recently about whether the general aviation
community pays its fair share to use the national aviation system
certainly have sparked a debate. That was clearly evident in a recent
Aviation Daily Departures opinion piece (May 19) titled “GA must face down
airline tax, user-fee threats.”

It was compelling reading, but if only for this simple fact: The fees
general aviation operators pay today don’t even come close to covering the
costs of the federal aviation services they receive.

Consider air traffic control (ATC). The writer, National Air
Transportation Association President James Coyne, argued that “the basic
rationale for ATC is … to protect airline passengers.” ATC actually exists
to provide safe guidance to all aircraft that utilize its services. Each
user should pay its fair share.

The Airport and Airway Trust Fund is the primary funding source for FAA
operations and ATC. General aviation is a major user of FAA services,
accounting for 40 percent of flights handled by FAA centers, and 69
percent of operations handled by FAA towers. However, GA contributes less
than $200 million per year into the fund via fuel taxes—about 2 percent of
all user contributions. Commercial passenger and cargo airlines, and our
customers, pay the other 98 percent.

GA flights not using ATC still benefit from FAA Flight Service Stations,
which exclusively serve general aviation and cost the government $532
million annually—nearly three times more than GA pays into the Trust Fund.


We agree that GA pays higher per gallon fuel taxes, but those taxes are
GA’s only contribution to the Trust Fund. Commercial airlines and their
customers pay multiple taxes into the Trust Fund totaling $9.6 billion
annually. And their tax and fee burden is as high as 26 percent on a
typical $200 domestic round-trip ticket.

Airlines aren’t the only ones saying that GA underpays. FAA’s own studies
conclude that only 7 percent of GA air traffic control costs are recovered
from fees and taxes, while 95 percent of commercial airline costs are
recovered. And a newer Reason Foundation study shows commercial airline
cost recovery exceeds 130 percent. And the National Civil Aviation Review
Commission, chaired by U.S. Department of Transportation Secretary Norman
Mineta, noted: “[i]t is clear … that the current level of [GA] tax
payments does not cover the costs GA imposes on the FAA.”

  #3  
Old November 4th 05, 06:51 PM
George Patterson
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Default GA's "fair share"

Skylune wrote:

Current contribution is shown below. Increased AVGAS tax rates or user
fees are a given!


You must have missed the last proposal, which is a bond issue.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.
  #4  
Old November 4th 05, 07:10 PM
Mike Rapoport
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Default GA's "fair share"


"Skylune" wrote in message
lkaboutaviation.com...
Current contribution is shown below. Increased AVGAS tax rates or user
fees are a given!

http://www.house.gov/transportation/...04-05memo.html


GA is also the only user that pays income tax.

Mike
MU-2


  #5  
Old November 4th 05, 07:19 PM
David Megginson
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Default GA's "fair share"

I think it's worth taking a different perspective on this. Let's say
that you have a moderately busy, medium-sized airport near a
medium-sized city -- there are (say) 20-30 airline flights in and out
every day. That airport has an FAA tower, and light aircraft account
for the majority of the movements. Should light aircraft owners pay
the majority of the cost of operating the tower, since we make the
majority of the radio calls?

To answer the question, consider what would happen if the tower were
closed. We all know how to fly in and out of airports without a tower
-- even the bizjets can handle that -- and on an IFR day, most of the
recreational pilots disappear, and the rest of us will simply do
one-in/one-out full procedure approaches. We might lose 10-15 minutes
occasionally, but that's no big deal.

Now, consider the airlines' CRJs or 737s having to share that airspace
with us, holding for 15 minutes waiting for a turn to approach in IMC,
or joining the VFR traffic pattern #5 for landing behind a Cessna 150.
With that in mind, who gets most of the benefits from having a control
tower?

I think the same is true of a lot of ATC services. Light aircraft talk
a lot to ATC, but to a large extent, we're doing so only to help the
heavy iron keep moving efficiently around us. It seems fair that the
airlines (and maybe bizjet operators) pay most of the cost, since they
get most of the benefit.


All the best,


David

  #6  
Old November 4th 05, 07:22 PM
Skylune
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Default GA's

by "Mike Rapoport" Nov 4, 2005 at 07:10 PM


"Skylune" wrote in message
lkaboutaviation.com...
Current contribution is shown below. Increased AVGAS tax rates or user
fees are a given!

http://www.house.gov/transportation/...04-05memo.html


GA is also the only user that pays income tax."

What the ????? There is no income tax on general aviation. Maybe you
mean the personal income tax, which everyone pays?





  #7  
Old November 4th 05, 07:31 PM
Skylune
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Posts: n/a
Default GA's

Finally. A more reasoned argument than the sound bite nonsense coming from
Boyer. I would add that since Commercial planes move many more bodies than
GA, the bulk of the cost should fall on the commercials.

The only thing is, it already does pay the lion's share by far. And,
consider that most of the $$ paid by GA on the table I posted are not from
recreational pilots, who are basically getting a free ride. How much tax
do you pay when you pump in 25 gallons of AV gas?

  #8  
Old November 4th 05, 08:07 PM
Steve Foley
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Posts: n/a
Default GA's

"Skylune" wrote in message
lkaboutaviation.com...

By Jim May, President and CEO, Air Transport Association


Consider air traffic control (ATC). The writer, National Air
Transportation Association President James Coyne, argued that “the basic
rationale for ATC is … to protect airline passengers.” ATC actually exists
to provide safe guidance to all aircraft that utilize its services. Each
user should pay its fair share.


I agree with Coyne on this point. I'll never believe ATC was created to
serve GA.


The Airport and Airway Trust Fund is the primary funding source for FAA
operations and ATC. General aviation is a major user of FAA services,
accounting for 40 percent of flights handled by FAA centers, and 69
percent of operations handled by FAA towers. However, GA contributes less
than $200 million per year into the fund via fuel taxes—about 2 percent of
all user contributions. Commercial passenger and cargo airlines, and our
customers, pay the other 98 percent.


How quickly will the 40% drop off if I have to pay for each call? Does
anyone really believe that I will pay the same fee that a landing clearance
that a revenue-producing 747 will pay? So what happens whan I stop calling?
The FAA still has to pay the center controllers. They still have to maintain
the navigation aids. They'll simply have fewer people using the services,
and more unidentified targets on the radar screens.

As for the 69% of tower opertions, GA accounts for 100% of the traffic at
several local towered airports. The cities are hoping for the return of
commercial traffic, and don't want to let go of their precious towers. In
fact, the controllers frequently ask the local pilots association to
practice there to 'keep the numbers up'. The same question remains: When
they start charging for a landing clearance, what will the 69% drop to?

GA flights not using ATC still benefit from FAA Flight Service Stations,
which exclusively serve general aviation and cost the government $532
million annually—nearly three times more than GA pays into the Trust Fund.


I call flight services because I have to call flight services. I can get
better weather info on line, but I have to be sure my tail number is on
their tape so when an un-announced TFR shows up, I'm covered.


“[i]t is clear … that the current level of [GA] tax
payments does not cover the costs GA imposes on the FAA.”


Again, what are the incremental costs GA imposes? I can stop using those
services entirely. Delta cannot.



  #9  
Old November 4th 05, 08:18 PM
Steve Foley
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Default GA's "fair share"

"Skylune" wrote in message
lkaboutaviation.com...
Current contribution is shown below. Increased AVGAS tax rates or user
fees are a given!


Here's a good analogy:

All boaters are asked to pay the same for 'use of the harbor', although the
majority of the costs are for dredging the harbor for the tankers. If the
harbor was used exclusively by small boats, the costs would be near zero.


  #10  
Old November 4th 05, 08:19 PM
Steve Foley
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Posts: n/a
Default GA's

"Skylune" wrote in message
lkaboutaviation.com...
by "Mike Rapoport" Nov 4, 2005 at 07:10 PM


"Skylune" wrote in message
lkaboutaviation.com...
Current contribution is shown below. Increased AVGAS tax rates or user
fees are a given!

http://www.house.gov/transportation/...04-05memo.html


GA is also the only user that pays income tax."

What the ????? There is no income tax on general aviation. Maybe you
mean the personal income tax, which everyone pays?

Chances are that I paid more in income tax last year than Delta.


 




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