FAA shutdown could cost US $1bn (£610m) in ticket taxes

Gerald · 08-03-11, 11:43 AM

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 due to the partial shutdown.

The FAA has also told tens of thousands of 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.

Congressional lawmakers have been deadlocked on whether to extend the FAA's funding because of a row over ending subsidies to 13 rural airports.

The Republican-controlled House of Representatives did pass legislation that included cuts and kept the FAA's operating authority in place until mid-September.

But Senate Democrats opposed the cuts and went into recess on Tuesday until early September without voting on the bill.

A spokesman for Democratic leader Harry Reid said the Senate would not allow House Republicans to "jam through a policy" on subsidies within a stop-gap funding extension bill.

The partial shutdown is expected to last at least until congressmen arrive back from their annual break.

The FAA debate was overshadowed on Monday and Tuesday by last-minute legislation passed in Congress to increase the US debt ceiling and avert a financial default.
'Another Washington wound'

The shutdown is costing the federal government some $200m per week in passenger ticket taxes that can no longer be collected, officials say.

http://www.bbc.co.uk/news/world-us-canada-14391886

Note: 3 August 2011 Last updated at 15:32 GMT

Growler · 08-03-11, 12:20 PM

Last I heard (from an old flame who works at FAA), there's many FAA employees who are or already have filed for unemployment benefits, and that this situation may last well into September or, from one source, October.

Gerald · 08-03-11, 12:56 PM

It will cost, not just the best news.

08-04-11, 02:23 AM

So let me see if I understand this.
"fiscal conservatives" are holding out for a cut, so far this intransigence has cost the taxpayer over 20 times what they think they were going to save with the cut, cost 70,000 jobs for nowand put another 4,000 in stasis.

So is this another example of silly politicians selling "cuts" to the gullible which increase spending?

08-03-11, 11:43 AM	#1
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	FAA shutdown could cost US $1bn (£610m) in ticket taxes 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 due to the partial shutdown. The FAA has also told tens of thousands of 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. Congressional lawmakers have been deadlocked on whether to extend the FAA's funding because of a row over ending subsidies to 13 rural airports. The Republican-controlled House of Representatives did pass legislation that included cuts and kept the FAA's operating authority in place until mid-September. But Senate Democrats opposed the cuts and went into recess on Tuesday until early September without voting on the bill. A spokesman for Democratic leader Harry Reid said the Senate would not allow House Republicans to "jam through a policy" on subsidies within a stop-gap funding extension bill. The partial shutdown is expected to last at least until congressmen arrive back from their annual break. The FAA debate was overshadowed on Monday and Tuesday by last-minute legislation passed in Congress to increase the US debt ceiling and avert a financial default. 'Another Washington wound' The shutdown is costing the federal government some $200m per week in passenger ticket taxes that can no longer be collected, officials say. http://www.bbc.co.uk/news/world-us-canada-14391886 Note: 3 August 2011 Last updated at 15:32 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie

08-03-11, 12:20 PM	#2
Growler A long way from the sea Join Date: May 2005 Location: Iowa Posts: 1,913 Downloads: 21 Uploads: 0	Last I heard (from an old flame who works at FAA), there's many FAA employees who are or already have filed for unemployment benefits, and that this situation may last well into September or, from one source, October. __________________ At Fiddler’s Green, where seamen true When here they’ve done their duty The bowl of grog shall still renew And pledge to love and beauty.

08-03-11, 12:56 PM	#3
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	It will cost, not just the best news. __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie

08-04-11, 02:23 AM	#4
Tribesman Stowaway Posts: n/a Downloads: Uploads:	So let me see if I understand this. "fiscal conservatives" are holding out for a cut, so far this intransigence has cost the taxpayer over 20 times what they think they were going to save with the cut, cost 70,000 jobs for nowand put another 4,000 in stasis. So is this another example of silly politicians selling "cuts" to the gullible which increase spending?