Problems with Airline Capital Funding

Problems with Airline Capital Funding (Article Critique)
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(22 September 2011)
Problems with Airline Capital Funding
The article covered is “Air Transport Association Opposes President's Proposed Aviation Taxes” by the Air Transport Association, published on Monday September 19, 2011. The article focuses on the proposals made by the president to impose on every flight a $100 departure tax and to add the passenger security tax up to three times the present amount. The Air Transport Association (ATA) is opposed to the moves and persuades lawmakers to reject the proposal on grounds that it will negatively impact on the economic recovery and create inconveniences to the airline companies, their employees and the customers.
The President and CEO of ATA Mr. Nicholas Calio argues that the airline companies pay more taxes than other industry such as alcohol and tobacco where their products are taxed highly to put off their use. The president gives the facts and figures of the intense of taxation in the industry, for instance $300 of a round trip ticket is taxed above $60 of the entire cost (Air Transport Association, 2011). The article is able to explain the different issues in the industry and why the taxes should not be raised.
There is enough justification in the article that more disastrous effects are foreseen if the move is implemented. The president is quoted in giving figures of the amount of cash and jobs lost since the 9/11 terror attacks on the US (Air Transport Association, 2011). The proposed taxes are seen to be a huge burden to the industry players that provide a very essential service to the nation’s economy. For example, $1 trillion is given by the industry that accounts for over 5 percent of the gross domestic product annually; in addition for every 100 jobs in the airline industry they support 388 jobs in other industries (Air Transport Association, 2011).
The article agrees with the ideas given in the industry since it has gi...