rcthompson04 wrote: ↑Wed Dec 11, 2019 6:53 am
Not charging tax on jet fuel is not a subsidy if the airlines are taxed elsewhere, which they are subject to taxes not seen in other areas of transportation. Jet fuel is not taxed as it was perceived there would be a level of selective refueling, which we see in other forms of transportation.
Actually, jet fuel *is* taxed in the US. Not sure where folks got the idea it wasn't, but you're wrong.
Last I recall, at the Federal level, commercial jet fuel is taxed at $0.044 per gallon, and non-commercial fuel at $0.193 for AvGas and $0.218 for Jet-A.
Then you have ~40 states which tax jet fuel, ranging from $0.01 to $0.26 per gallon *AND* another 10 states have sales tax on top of the per gallon taxes....
For a 737-800 that burns around 850 gals per hour, the Federal tax alone comes out to $37 for every hour of flight, or around $133,000 a year per aircraft.
That's $99M per year in Federal fuel taxes alone for Southwest Airlines......
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