How A Recent Increase In Fuel Tax For Business Jets Will Affect The Private Jet Industry

On Monday, March 11, the President of the United States, Joe Biden, officially submitted a proposal that would increase fuel taxes for business jet operators. The White House indicated this proposal was to ensure business jet operators pay their share compared with airline passengers. Airline passengers already pay special taxes on every ticket that is purchased, so this proposal would attempt to even out the aviation market, according to the White House. Per AIN Online and the United States Department of Transportation (USDOT), private jets account for 7% of all operations handled by air traffic controllers. However, private jet operators contribute just 0.6% of the taxes that fund the Airport and Airway Trust Fund, which provides funding for the aviation system in the United States. This trust fund covers the majority of the Federal Aviation Administration's (FAA) annual budget.