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Subcommittee on Select Revenue
The Honorable Richard Neal, Chairman
FOR IMMEDIATE RELEASE
Neal Contact: William Tranghese (202) 225-5601
Committee Press Office: 202-225-8933
Neal Opening Statement at Hearing on Aviation Taxes
August 1, 2007
(WASHINGTON, D.C. - Ways and Means Subcommittee on Select Revenue Measures Chairman Richard Neal issued the following opening remarks during today's hearing on aviation taxes:
"I am pleased to welcome our witnesses today who will assist the Committee in understanding how funding works for the Airport and Airway Trust Fund. We will hear from three panels today, representing the government perspective and the private aviation industry impacted by any change in revenue.
"Orville Wright once said, "The exhilaration of flying is too keen, the pleasure too great, for it to be neglected as a sport." Just last year, almost 700 million passengers experienced flying in America. But I doubt every one of them shared Orville Wright's exhilaration. The "road warriors" who compete for upgrades and comps may like this sport, but for the rest of us stuck in "19E," travel has become anything but pleasurable.
"The good news is that travel has rebounded since the attacks of September 11th. The bad news is that congestion and delay have as well.
"While the positive story is that this has been the safest in American aviation history, it has also been a period of the worst delays for passengers. Some claim that the current funding system has contributed to the congestion and we will hear testimony on that today. Clearly, as we look to funding changes for the aviation industry, we must ensure that these changes will improve the overall system, which should include a passengers' bill of rights.
"The expiration of these taxes is a matter this Committee has not faced in a decade. But several important questions have to be answered in order to do so. First, this comes at a crucial time for the FAA, which seeks to overhaul air traffic control with a satellite-based "NextGen" system. This, of course, is a major financial commitment. There is a question as to whether the current revenue stream could cover such capital costs. Second, is the distribution of the burden of taxes between and among aviation users appropriate. This hearing today will explore these issues and provide direction to the full Committee in anticipation of a markup when we return from recess.
"From Hartford to Chicopee to Boston and Providence, an efficient air travel system is an integral part of the economy in the Northeast, and all around our nation. It cannot be understated. This Committee has the responsibility of extending the expired taxes before the end of September, and I am hopeful that we can meet that challenge."
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