The FAA’s operating authority expired on July 23, as well as the authority of airlines to collect about $30 million a day in ticket taxes, meaning the government will be unable to collect an estimated $1.2 billion in taxes if the shutdown continues until lawmakers return to work next month.
Because one thing our government doesn’t need is tax revenue — right? Here’s Eric Cantor’s take on it:
“And what airlines have done is have stepped in and said, well, if we’re not going to pay that money to the federal government, we’re going to keep it towards our own bottom line. And I guess that’s what business does.” -– Eric Cantor, yesterday on Fox “News”
Please note — the FAA is unable to collect federal taxes right now because of Republicans’ insistence on anti-union provisions in the funding bill. The airlines could pass this temporary windfall onto customers — even a little bit, but they’re not doing that. Instead the airlines are pocketing about $30 million a day in profits.Why? Because THAT’S WHAT BUSINESS DOES, according to Republicans.
And you know what Republicans do? They set up scenarios like this to enrich their corporate benefactors. So for five weeks about 4,000 FAA employees are furloughed and no taxes are collected because of anti-union legislation introduced by the Republicans. During these five weeks, airlines will benefit by about $1.2 billion in uncollected federal tax.
It will be interesting to watch GOP campaign contributions from major airlines. Is the GOP showing gratitude or investing in the future? Follow the money…