November 7, 2007
Will Congress Raid The Aviation Trust Fund?
By Mary Grady, News Writer, Editor
That’s the question raised by a Wall Street Journal commentary on Wednesday. The procedural rules that would allow it to happen are complex – the sausage factory analogy certainly applies – but according to the WSJ, Congress could pilfer the $10 billion per year raised by airline excise taxes (and GA fuel taxes) and use it to balance the budget so they don’t have to impose higher taxes on the middle class – as they would otherwise have to, under their own rules, to balance the budget. This sleight of hand will be made possible only if the House allows general tax revenue to fund the FAA. Thus, according to the WSJ, there is a major political incentive for Congress to change the FAA’s funding structure, to solve its own political problems.