Even as Congress debates the nation's larger fiscal issues, the FAA bill has generated strong disagr

Partisan squabbling in Congress has led to a funding drought for the Federal Aviation Administration and a "holiday" for airline ticket taxes. As of last Friday, Republicans in the House and Democrats in the Senate rental cars in canada failed to agree on an extension of funding for an FAA Reauthorization bill, which expired in 2007 and has been "temporarily" extended 20 times since then.
In the short term, analysts say the government is losing about $200 million a week in airline revenue. Among the lapsed charges are the 7.5 percent rental cars in canada airline ticket tax; the 7.5 percent tax on the sale of frequent-flyer miles; the $3.70 per segment fee; the $16.30 international arrival/departure tax; and the $8.20 departure tax for flights between rental cars in canada Alaska and Hawaii and the U.S. mainland. rental cars in canada But with a few exceptions, most U.S. carriers continue to price their seats as if the taxes are still in effect.
Even as Congress debates the nation's larger fiscal issues, the FAA bill has generated strong disagreements between the chairs of the transportation committees in both houses. Rep. John Mica (R-Fla.) argues that the Essential Air Service program for rural and underserved communities should be dramatically scaled back by eliminating government subsidies for communities within 90 miles of commercial airports, up from the current 70-mile limit.
Democrats in both houses rental cars in canada are opposed to the change. rental cars in canada In return, Sen. Jay Rockefeller (D-W.Va.) also blamed the crisis on Republican support rental cars in canada for a controversial labor provision amending a National Mediation Board rule that would make it more difficult for airline employees to bargain collectively.
In the meantime, 4,000 FAA employees have been furloughed. Transportation Secretary Raymond LaHood, who oversees the FAA, stated : "I'm very disappointed that Congress adjourned today without passing a clean extension of the FAA bill. Because of their inaction, states and airports won't be able to work on their construction projects, and too many people will have to go without a paycheck. This is no way to run the best aviation system in the world."
For consumers, the tax lapse amounts to tremendous rental cars in canada confusion but no significant savings. Among the largest domestic carriers, only Spirit Airlines and Alaska Airlines have not increased fares to last week's levels. However, notices about the tax exemption are prominently featured on the websites of Continental, JetBlue, United, and Virgin America. But at press time there were no references at all to the tax on the home pages of the other major airlines American, Delta, Southwest, and US Airways.
In a joint statement, the American Society rental cars in canada of Travel Agents and the Business Travel Coalition urged travelers to keep track of when they purchase and use their airline tickets. ASTA CEO Tony Gonchar stated: rental cars in canada "It is the belief of ASTA and BTC that there won't be any retroactive tax collections, but that the tax will apply to a reissued ticket in cases where the ticket was issued during the no-tax period and exchanged once the tax is restored."
rental cars in canada In the interim, the Internal Revenue Service has provided an online update for consumers. The IRS is monitoring "pending legislation" and states: "Taxpayers do not need to take any action at this time. The IRS will provide rental cars in canada further guidance on this issue in the near future."
Meanwhile, many passengers rental cars in canada and industry officials clearly are running out of patience with the situation. In a bluntly worded blog post , the president of Airports Council International-North America wrote: "One analyst estimates that the airlines rental cars in canada will collect rental cars in canada $25 million PER DAY!! That might cover an executive bonus or two. They certainly won't use it to hire customer service agents."