Flier tax for airport renovation unneeded
In their op-ed, the directors of Kentucky’s three airports misled readers about a spending bill before Congress that would actually increase taxes on Kentucky fliers.
While they praise how the bill would raise funds for airport improvement projects, the authors fail to mention that the bill would increase the Passenger Facility Charge (PFC) — a mandatory tax added to all plane tickets — by 89 percent.
Everyone agrees that Kentucky’s airports are vital to the state’s economy. The good news is there are enough funding sources available to ensure airport upgrades are done without unnecessarily raising taxes on passengers.
Kentucky airports took in $20.6 million in PFC revenue and $32.48 million in grants in 2016 – not including the $6 billion in federal funding in the FAA’s trust fund Kentucky airports can access if needed.
Even after completing major terminal upgrades, Cincinnati/Northern Kentucky International still has $114.57 million in unrestricted cash.
Meanwhile, the proposal the authors support would cost Kentucky fliers up to $20.43 million annually in additional taxes.
It’s true that Kentucky’s airports are vital to the state’s economy, but those same airports already generate enough cash to improve their facilities without burdening their customers with an unnecessary tax increase.
This story was originally published January 29, 2018 at 7:10 PM with the headline "Flier tax for airport renovation unneeded."