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New FAA Budget Spells End for “User Fees”

JetPlaneAs part of his new budget proposal, President Obama has opted to drop “User fee” language from the Federal Aviation Administration (FAA) budget.

User fees would break from the traditional excise tax format of the past.

Following ambiguous language hinting at a shift from the excise tax format to the system that would charge general aviation users on a case by case basis, the idea was hit with heavy opposition.

House Aviation Subcommittee Chairman Jerry Costello (D-Ill.), a staunch opponent of the measure, was pleased with the news, telling Aviation Week: “I commend the President and Transportation Secretary [Ray] LaHood for not rehashing this issue – no aviation user fees in the budget is a big step forward,”

“The House has demonstrated in no uncertain terms that user fees are unacceptable,” Costello said.

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