Lawmakers Seek Extension of Aviation Tax Holiday

September 14, 2020

Speaker Nancy Pelosi
U.S. House of Representatives
United States Capitol, H-232
Washington, DC 20515

Minority Leader Kevin McCarthy
U.S. House of Representatives
United States Capitol, H-204
Washington, DC 20515

Chairman Richard Neal
Cmte. on Ways and Means
U.S. House of Representatives
Washington, DC 20515

Ranking Member Kevin Brady
Cmte. on Ways and Means
U.S. House of Representatives
Washington, DC 20515

Chairman Peter DeFazio
Transportation & Infrastructure
Cmte. on Ways and Means 
U.S. House of Representatives
Washington, DC 20515

Ranking Member Sam Graves
Transportation & Infrastructure Cmte.
U.S. House of Representatives
Washington, DC 20515

Dear Speaker Pelosi, Leader McCarthy, Chairman Neal, Chairman DeFazio, Ranking Member Brady, and Ranking Member Graves:

We write to express support for extending Section 4007 of the CARES Act, which suspended certain aviation excise taxes between March 28 and December 31, 2020. We urge extension of this temporary tax holiday until December 31, 2021, or until airline passenger traffic returns to 75 percent of its'2019 levels, whichever comes first.

With your timely leadership this spring, Congress acted to temporarily protect jobs in multiple sectors of the economy, including in aviation. As the pandemic maintains its grip on the economy, now is not the time to let up on our efforts. We must continue to extend provisions in the CARES Act that have worked to protect businesses, jobs, and consumers, and that are critical to contributing to the post-pandemic recovery.

As a result of the pandemic, airline passenger numbers fell dramatically, and according to the Transportation Security Administration, passenger numbers currently stand at about 25 percent of pre-pandemic levels. Because of this drop-off, the Airport and Airways Trust Fund (AATF) will soon become insolvent, regardless of whether the aviation excise tax holiday is extended or not. With action to shore up the AATF already necessary, extending this holiday should not be viewed as a burden on the fund. Rather, this tax break will support air travelers and keep the air travel industry from stalling so that the broader public will be able to return to the skies and their favorite destinations after the pandemic.

Reports have shown reinstating excise taxes, a line item in ticket prices, will raise the cost of a flight for consumers by 11% on average, with a greater impact on lower-priced airline tickets. This price hike will further erode consumer demand for air travel and hinder the economic recovery at precisely the wrong time. Industry estimates find that prematurely ending the tax holiday would reduce 2021 demand by 35 million passengers. In turn, this will mean fewer jobs — not only in the aviation industry, but in any type of business that relies on domestic travel and tourism.

Extending Section 4007 of the CARES Act and stabilizing the AATF will prevent these declines and support essential FAA activities like air traffic control services and airport grants into next year. Thank you in advance for your consideration of our views on this important matter.

Sincerely,

Charlie Crist
MEMBER OF CONGRESS

Jenniffer Gonzalez-Colon
MEMBER OF CONGRESS

Veronica Escobar
MEMBER OF CONGRESS

Van Taylor
MEMBER OF CONGRESS

Colin Allred
MEMBER OF CONGRESS

Don Bacon
MEMBER OF CONGRESS

Mark Amodei
MEMBER OF CONGRESS

Jim Banks
MEMBER OF CONGRESS

Brian Babin
MEMBER OF CONGRESS

Rob Bishop
MEMBER OF CONGRES

Anthony Brown
MEMBER OF CONGRESS

Henry Cuellar
MEMBER OF CONGRESS

Tony Cardenas
MEMBER OF CONGRESS

John Curtis
MEMBER OF CONGRESS

Ed Case
MEMBER OF CONGRESS

Rodney Davis
MEMBER OF CONGRESS

Steve Cohen
MEMBER OF CONGRESS

Val Demings
MEMBER OF CONGRESS

Lou Correa
MEMBER OF CONGRESS

Mario Diaz-Balart
MEMBER OF CONGRESS

Rick Crawford
MEMBER OF CONGRESS

Neal P. Dunn, M.D.
MEMBER OF CONGRESS

Dan Crenshaw
MEMBER OF CONGRESS

Tom Emmer
MEMBER OF CONGRESS

Brian Fitzpatrick
MEMBER OF CONGRESS

Blaine Luetkemeyer
MEMBER OF CONGRESS

Tulsi Gabbard
MEMBER OF CONGRESS

Tom McClintock
MEMBER OF CONGRESS

Vicente Gonzalez
MEMBER OF CONGRESS

Chris Pappas
MEMBER OF CONGRESS

Lance Gooden
MEMBER OF CONGRESS

Scott Perry
MEMBER OF CONGRESS

Kendra Horn
MEMBER OF CONGRESS

Stacey Plaskett
MEMBER OF CONGRESS

Eddie Bernice Johnson
MEMBER OF CONGRESS

Harley Rouda
MEMBER OF CONGRESS

Debbie Lesko
MEMBER OF CONGRESS

Dutch Ruppersberger
MEMBER OF CONGRESS

Bobby L. Rush
MEMBER OF CONGRESS

Filemon Vela
MEMBER OF CONGRESS

Michael San Nicolas
MEMBER OF CONGRESS

Randy Weber
MEMBER OF CONGRESS

Darren Soto
MEMBER OF CONGRESS

Bruce Westerman
MEMBER OF CONGRESS

Steve Stivers
MEMBER OF CONGRESS

Roger Williams
MEMBER OF CONGRESS

William Timmons
MEMBER OF CONGRESS

Ron Wright
MEMBER OF CONGRESS

David Trone
MEMBER OF CONGRESS

Mark Veasey
MEMBER OF CONGRESS