More than 10 million U.S. jobs are tied to commercial aviation and 1.3 million U.S. jobs to general aviation. Increasing air taxes would kill hundreds of thousands of them. At a time when 25 million Americans are out of work, any plan to increase air taxes is an irresponsible strategy to tackle the deficit. While the Supercommittee did not act on the White House proposal to add new air taxes, there is still a possibility that airlines and their customers could face higher taxes.

The economic firm of Oliver Wyman estimated that in 2012 alone, the new set of taxes as proposed by the White House would have resulted in almost 10,000 direct passenger and cargo airline job losses, costing the entire economy 181,000 lost jobs. By 2021, these taxes would have resulted in more than 17,000 direct passenger and cargo airline job losses, costing the entire economy 329,000 lost jobs.

Airline Industry and Supply Chain
You’ve felt its effects first-hand: Since 9/11, economic pressures have cost the airline industry $55 billion and 160,000 jobs - more than a third of its workforce - creating ripple effects throughout the economy in businesses like yours.

To further burden this already financially challenged industry is both illogical and a job destroyer. If Congress adds more air taxes, it would deliver another blow to employment dependent on both commercial and general aviation. Instead, we should be working together to encourage job growth in the aviation industry and throughout the economy.

Congress continues to eye increasing taxes, which will ground the economic engine behind American business. New taxes should not happen on the backs of those who drive the economy: general aviation operators, airlines and their customers.

The Numbers
General aviation supports 1.3 million jobs and contributes more than $150 billion to the U.S. economy annually. Commercial aviation drives more than $1.2 trillion in economic activity annually, or more than 5 percent of U.S. GDP. With every 100 airline jobs supporting roughly 388 jobs outside of the industry, commercial aviation supports more than 10 million well-paying American jobs.

Slowing Economic Growth
To grow the economy, the President has called for the nation to double exports in five years. Adding new air taxes on the airline industry will unequivocally reduce capacity - making his goal nearly impossible to attain. Instead, new taxes will have the unintended consequence of harming the economy as fewer people travel and fewer goods are shipped.

Razor-Thin Margins
Of the industries that contribute most to the economy, aviation is number three - behind energy and farming. Yet, among the 53 principal industries that make up the nation’s economy, Fortune magazine ranked airlines dead last in profitability. With these razor-thin margins of profitability, the industry doesn’t have room to absorb these new taxes.

Any new taxes being considered by Congress and the Administration could hit businesses in America’s smaller cities hardest as airlines reduce service to save costs to compensate for the increased taxes.

Given a razor-thin profit margin of slightly more than one percent last year, airlines will have no choice but to try to offset new taxes by reducing service or impacting fares. Customers will be left with fewer choices of when and where they fly. In particular, the reduction in service will hit the less-profitable routes and small and rural communities the hardest.

American Business
It’s hard enough to compete right now. This is the wrong time to cut off businesses in smaller cities from their clients and customers in larger ones. Proposed tax increases hit businesses operating in smaller communities the hardest and dampen competition.

Consumers
With reduced service, many travelers in America’s smaller cities will be cut off from larger ones. Year-round, American tourism will suffer. During the holidays, fewer Americans will have the travel choices necessary to make spending time with loved ones an option.

Any new taxes under consideration by Congress and the Administration will impact the cost of flying, leaving passengers and general aviation out in the cold.

General aviation operators will have fewer choices on where they fly and park their airplanes. With a razor-thin profit margin of slightly more than one percent last year, airlines will have no choice but to try to offset higher taxes by raising airfares or reducing service. Customers will be left with fewer choices of when and where they fly, and how much they’ll spend to do it.

Proposed tax increases are a tax on business and consumers.

Business
Just when we need the economy to take off, Congress continues to consider grounding American business with new taxes that could cut them off from the clients they need to see.

Consumers
New taxes on air travel would ground a significant number of commercial and general aviation fliers, negatively impacting American tourism. During the holidays, spending time with loved ones would become prohibitively expensive for many American families.