Originally Posted by
F15Cricket
Hmm, not sure I understand your point ... The article didn't mention those three but it did mention the Big US3... Not saying other airlines might not benefit in other states, but this does seem to be a subsidy to the Big US3, at the expense of other
U.S. airlines. So, I expect those on here to be equally outraged at this unfair subsidy?
On Wednesday, March 18, a majority of the North Carolina Senate signed onto an economic incentive bill that would let
American Airlines’ handout expire at the end of the year. The break is a cap on the amount of sales tax on jet fuel American pays, expected to be worth $15.5 million next year.
On Thursday, March 19, the Illinois House Revenue and Finance Committee voted in favor of a bill to close a tax loophole that
United Airlines and
American Airlines use to avoid paying millions in local sales taxes.
On Friday, March 20, the Georgia Senate passed a transportation funding package that would end
Delta Air Lines’ tax break. The bill, which passed the House earlier in March, would eliminate the state’s estimated $25 million sales tax break on jet fuel for airlines.
The big rub in the US is how much to tax jet fuel.
Some states tax it as the same of gasoline which can be argued isn't exactly fair as very little "road use" is associated with it.
In these states they sometimes adjust the tax load on jet fuel down.
Some states are so expensive on jet fuel taxes that airlines will actually tanker fuel to avoid that extra expense.
If your airline has a hub in one of these states, you use a preponderance of the jet fuel sold in the particular state.
So you say that Delta receives a "tax break" because the state set the jet fuel tax at a lower level at some point.
Probably the same in the other states with hubs, it's usually done because the states see the hub status as a large economic benefit and they want to maintain that status vice make it economical for the airlines to move hub operations to other locations.
So your argument is that the states should tax the heck out of aviation fuel/operations because unless the tax load is unbearable, it must be a subsidy?