The other night while listening to a BBC broadcast on my local NPR station (oh how I miss the quality of local programming on Oregon Public Broadcasting but that's a topic for another post), I heard a bit about a new tax on flights in and out of France that just took effect.
Basically, they've added a surcharge to every flight in and out of the country, from 1-40 Euros depending on the ticket class and trip distance. This money, expected to be 200 million Euros in the first year, is earmarked for medical aid in Africa.
The BBC radio story had several interviews with people in France on the subject, most of whom were generally supportive, if not with the method then at least with the purpose. Several people pointed out that adding a single Euro to the cost of a ticket for a short flight isn't that big of a deal, nor is 40 Euros for a first-class Transatlantic flight (a quick visit to the Air France website shows that round-trip first class fare from Vegas to Paris is a bit more than $4,200, and they say that generally the various government-imposed taxes and fees would add $153 for that itinerary -- about 3 1/2 percent extra). This being France, of course, there were the socialists as well who said that the tax should only apply to business class fares, since it certainly won't hurt business to pay extra.
Anyhow, it's an interesting idea, paying for one desired expenditure with a targeted tax on a completely unrelated item. There are already a host of taxes and fees added to air travel, but they generally have at least something to do with that travel. We in the U.S. have the 9/11 security surcharge, landing fees, fuel tax surcharges, etc. These are all forms of "user fees", where the cost of providing a service is partially offset by those who use that service.
Would it make sense to add a tax to air travel for, say, health care for the uninsured? If so, why air travel specifically? Why not train travel, or cruise ships, or luxury hotels? (All points raised in the BBC radio item.)
Or, if there is a collective expenditure that the government feels is necessary, why not pay for it out of the general budget, using general revenue mechanisms?
Thoughts?
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