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FAA shutdown could cost US $1bn (£610m) in lost taxes
Wednesday, August 3, 2011 9:09 AM
GEEZER
Keep the Shiny side up
Quote:The US could lose up to $1bn (£610m) in airline ticket taxes, officials say, amid an impasse in Congress over the Federal Aviation Administration (FAA). The agency has been forced into partial shutdown after its operating authority expired on 23 July. The government has already lost more than $200m because airlines are unable to collect taxes on ticket sales. Some 4,000 FAA staff are on unpaid leave. Lawmakers are not due back from their annual leave until September. Close to 4,000 FAA employees, including engineering technicians and computer specialists, have been forced to take a temporary leave of absence because of the partial shutdown. The FAA has also told about 70,000 construction workers on airport projects to stop work. It is reported to have asked dozens of airport inspectors to work without pay and charge their government travel expenses to their personal credit cards. "These men and women are now being asked to spend their own money to do their jobs... This is one of the most outrageous things that I can comprehend," Senate Majority Leader Harry Reid said during a news conference on Wednesday.
Wednesday, August 3, 2011 9:36 AM
M52NICKERSON
DALEK!
Wednesday, August 3, 2011 12:57 PM
KWICKO
"We'll know our disinformation program is complete when everything the American public believes is false." -- William Casey, Reagan's presidential campaign manager & CIA Director (from first staff meeting in 1981)
Wednesday, August 3, 2011 4:03 PM
Quote:Originally posted by Kwicko: Huh. So lower taxes DON'T translate to lower prices. Imagine that.
Thursday, August 4, 2011 8:50 AM
NIKI2
Gettin' old, but still a hippie at heart...
Quote:Alaska Airlines and the discount carrier Spirit Airlines were among the few holdouts, said Rick Seaney, the chief executive of FareCompare.com, which monitors airline fares. In a statement, Spirit Airlines took the opportunity to chide its competitors. “Spirit is passing along all of these tax-rollback savings to its customers,” it said. “Some carriers have not been so generous and have pocketed the difference in taxes, in the form of higher fares.” “The consumer should have saved anywhere from $25 to $50 round trip,” Mr. Seaney said. “Instead, it’s a windfall for the airlines.”
Quote:But Jean Medina , a spokeswoman for the Air Transport Association , the airline industry trade group, said, “Basically, consumers are now paying the same as they did last week.” http://www.nytimes.com/2011/07/26/business/airlines-raise-fares-as-federal-taxes-expire.html
Thursday, August 4, 2011 3:37 PM
FREMDFIRMA
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