(CNN) -- Posted: July 17, 2006
Forum: read comments
Since the beginning of July, flyers out of France have been paying a new tax. An "air tax" has been imposed on tickets with money raised going to pay for medicines in the developing world. The idea was the brainchild of French President Jacques Chirac, who at this week's G8 summit will try to rope in other countries to adopt his "air tax."
The money is relatively insignificant -- 1 euro on short-haul economy tickets, rising to a maximum of about 40 euros on long-haul first class tickets. But for business travelers it raises the question of whether it fair to lump us with another tax -- albeit for a worthy cause ?
The arguments are, by their nature, emotive. A small amount of money paid by travelers to pay for life-saving medicines in the poorest part of the world. It's hard to argue against this sort of logic. But the tax is a very dangerous step, in my view.
Business travelers have no option but to get on the road and travel, and we are an easy target for new taxes. Just look at any ticket these days. There are the normal duties, excise charges and taxes. Then there are facility fees, security taxes and fuel surcharges. If you buy a cheap ticket from London to New York, taxes and extras come to more than the price of the ticket itself.
Not surprisingly, the airlines have come out against this tax ("Well, they would, wouldn't they?" I hear you shriek) But many other nations also think the "air tax" is a poorly conceived idea which will inevitably be poorly executed.
Why should travelers -- leisure or otherwise -- be penalized just for going about their lawful business? What about a small tax on luxury cars? A tax on clothing ? How about 50 cents on the price of the average supermarket bill ? I mean what's the magic of a tax on airline tickets?
It's easy to collect, that's why. And people have to travel for business. And if the price of the ticket is high enough, people won't notice and won't complain.
That's one reason why in the U.S., prices for goods are always shown pre-sales tax or pre-flight taxes, so consumers can see exactly how much money is being taken by the government.
IATA, the trade union for the airlines, is very much against this tax -- again, they would be, wouldn't they? -- because they believe that free trade and reducing trade barriers will have longer term benefits than a short-term fix.
The truth is, if most nations were doing a lot better at reaching their millennium goals of debt relief and overseas aid, there wouldn't be the need for these gimmicky taxes that will not really raise that much money and cause anguish on the way.
I feel terrible writing this. I have just come across as heartless, cruel and downright mean. After all, we are only talking about a euro here or a couple of euros there. But that's not my point. For too long, business travelers have been the cash cows for everyone else. Hotels overcharging on phone calls, taxis taking you for a ride, airlines overcharging (now price fixing on surcharges possibly??) and a reservoir of money for every hair-brained tax idea that comes along.
We are not governments' ATMs to be used when needed for this or that. Others should withstand this wonderful motive and dreadful idea.
Forum
From: Ednardo Melo, Rio de Janeiro, Brazil
Posted: 17 July, 2006
Comment: I absolutely agree with you on the new tax imposed on passengers coming into or out France. It will not result in a sizable amount of money and its application will be subject to all types of scams and fraud. Doling out money never solved any difficulty; it may even compound problems. Fair trade practices from rich nations toward less developed ones would bring sizable progress. By the way: the "thinker" behind such a "bright idea" is Mr Lula, Brazil's president. Mr Chirac merely went along for the ride.
From: Chuck Pearson, Scottsdale, Arizona
Posted: 17 July, 2006
Comment: So the French President is having trouble with his popularity and picks his favorite charity, adds a tax, so everyone who flies can contribute. This is not about money or charity, it is about abuse of power. In the U.S. we have a favorite abuse of power, requiring the citizens of a state to build a sports stadium or, better yet, they add a "tax" to rental cars and hotels with the logic that visitors will pay. Taxes should be imposed to run government, provide infrastructure and defense. When politicians start funding "pet," personal projects, we the citizens need to be counted on to speak up and vote -- for the other guy!
From: Jose V. Lopez Perrotta, Dominican Republic
Posted: 17 July, 2006
Comment: You are so right! We, the business travelers are the life savers! and the life givers!
From: Melissa Petri
Posted: 18 July, 1006
Comment: I agree with what you wrote 100 percent. I can't understand why charity is being forced, just because we business travelers can afford it AND have no choice but to travel.
From: Deborah Kudzman, Canada
Posted: 18 July, 2006
Comment: I fully understand your point of view but I can't see the logic when you keep going on about business travelers bearing the brunt of everything. If this is your main argument (which it seems to be), then one has to ask: who cares? Aren't employees usually refunded for their travel expenses by their employer? As a small business owner myself, I believe these expenses are also tax deductible to the company. Boo, hoo, hoo. Big business has to pay again. Perhaps if most of these companies gave away a little more to charity than these taxes would indeed become unnecessary and obsolete.
From: Daniel Coetzer, France
Posted: 18 July, 2006
Comment: It would be nice if more reporters report "straight and without fear" like you did on the French taxes. It is stupid and will create opportunities for silly taxes -- that will end up in the wrong wallets anyway!!!!!!!!
From: Ruth Anderson
Posted: 18 July, 2006
Comment: I wholeheartedly agree with you but I take you to task for being "too British" in your response. Your sense of fairness and charitable giving here is misplaced. Are you and other Brits really so "fair minded" that you will overlook and even apologize for an obvious tax grab because "it's all in a good cause?" Forget the apologies. A rip-off is a rip-off.
From: Ryan Anderson
Posted: 18 July, 2006
Comment: No one is asking you to be an ATM for the government. If anything, you're being asked to be a global citizen. The same business class folks you champion now rarely even bat an eye toward the child labor or the sweatshops or the people dying in mines to get their diamonds. The unfortunate businessmen is the workhorse for the American capitalist system? Too bad. The workers in the third world are the ones exploited in the first place and now you can not give a euro back to them for basic, life essential goods. One lousy euro. But it is acceptable for someone to die to get a diamond. You can not expect a reader to believe you honestly feel terrible. Your quest to save one more euro here or one more dollar there continues to thwart general good. Your abstract ideals about government and taxed are important but they absolutely lack practicality. Should a government be allowed to take money like this? No. Should we be able to let people die in the third world when we can easily save lives with little sacrifice? No. Now one must decide which is more important, a life or the government taking a euro per flight. I will take the life any day.
From: Pascal Hernalsteen, France
Posted: 18 July, 2006
Comment: The funny thing is that Chirac was accused of being involved in a scam where he and his relatives got "free" air ticket for personal use. The estimated bill reached about 400,000 euros, paid cash between 1992 and 1995, but being president (Maire de Paris at that time, actually) gives you such privileges that you can not be sued during your mandate. Becoming president gives you extra miles on your frequent flyer card. I'm quite sure he could afford to have paid for a ticket.
From: Steve Cherry-Downes
Posted: 20 July, 2006
Comment: You are right. Business travelers are clobbered every which way. How about a tax on politicians' (especially Euro MPs) expense accounts?
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