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Failure To Close FAA Deal Leads To $1 Billion In Losses

August 5, 2011 by  

A lack of taxes on airline tickets may lose money for the FAA, but the effect on the airlines and consumers is still to be seen.The U.S. government may lose more than $1 billion in airline ticket taxes due to a lack of resolution on a partisan standoff concerning the partial shutdown of the Federal Aviation Administration, The Associated Press reported.

Unable to collect taxes on ticket sales due to the expiration of the FAA’s operating authority, the government has already lost more than $200 million. A Senate recess until September has erased the possibility of a quick resolution, according to the news source.

A lack of taxes on airline tickets may lose money for the FAA, but the effect on the airlines and consumers is still to be seen, the AP reported.

The Senate stalemate has left more than 4,000 FAA workers without pay, leaving these employees out of work. Airport safety inspectors may have to continue working without compensation, something that does not bode well for travelers, The New York Times reported.

“Democrats have to decide if they are going to be the handmaidens of the labor unions in every policy,” Senator Jon Kyl (R-Ariz.), the Senate Minority Whip, told the AP. “Every now and then they should put the American people first instead of their constituency.”

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