US cargo tax-break off

ALMOST US$400 million in uncollected taxes later, and finally the US Senate has brought the Federal Aviation Administration (FAA) back to life.

The FAA had been shutdown since 22 July following the House of Representatives and the Senate’s failure to agree on funding. This has resulted in the administration being unable to collect approximately $29 million in aviation taxes a day.

The Senate has now approved legislation extending the FAA’s funding authority through to 16 September and to eliminate $16.6 million in subsidies for flights to 13 rural airports. It also means 4,000 workers on furlough can return to work, but they will not be paid for the forced time off.

Up until 4 August the FAA lost an estimated $371.8 million in taxes, including on airline tickets, jet fuel and cargo.

The deadlock also stopped the agency from distributing $2.5 billion in grants for airport projects around the country, idling 70,000 workers in construction and related jobs.

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