The FY 2017 White House budget proposal would raise federal taxes on airline travel, a change projected to cost air travelers up to $7.9 billion annually — about $22.6 million more than in 2016. Currently, passengers pay roughly $63 in federal taxes on a round‑trip domestic ticket; under the proposal that amount would climb to about $80 per ticket.
Airlines for America, an industry trade group, criticized the proposed increase. In a statement, the organization said U.S. airlines play a vital role in the national economy and argued that travelers should not be asked to shoulder the burden of deficit reduction. The group urged Members of Congress to oppose tax hikes that would raise travel costs for the roughly two million passengers who fly on U.S. airlines each day.
The budget also seeks to raise other travel‑related taxes and fees. It would increase the per‑trip security tax for one‑way flights over time, a change estimated to cost passengers and airlines about $1.2 billion annually. The proposal would reinstate a $420 million TSA Aviation Security Infrastructure Fee, boost the customs fee from $5.50 to $7.50, raise the immigration fee from $7 to $9, and impose a $10 per barrel tax on oil, a measure that could translate to an increase of roughly 23.8 cents per gallon at the pump.
Taken together, these measures would add to the cost of both air travel and overall transportation, affecting ticket prices and consumer fuel expenses. Lawmakers, industry representatives, and travelers will likely scrutinize the proposal as the budget process moves forward.