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How a recent increase in fuel tax for business jets will affect the private jet industry

President Joe Biden is proposing a huge increase in fuel taxes for private jets, which his administration is pitching as a fairness issue compared with airline passengers, who pay special taxes on every ticket. 

The largest business-aviation trade group came out against the targeted fuel-tax increase, saying private jets help companies succeed and create jobs. 


The White House earmarked nearly $22 billion for the Federal Aviation Administration, including funds to hire at least 2,000 new air traffic controllers, and replace aging FAA facilities, which FAA Administrator Mike Whitaker said are 40 years old on average.  

The budget would gradually raise the tax on fuel used by private jets from about 22 cents per gallon now to $1.06 per gallon in five years. The Transportation Department says the increase would help stabilize funding for FAA's management of the national airspace, which is mostly paid by airline passengers. 

Airline passengers pay a 7.5% excise tax on tickets and a separate levy of up to $4.50 per flight to help pay for airport projects. 

According to the government, private jets are responsible for seven per cent of all flights handled by the FAA, but pay less than one per cent of the taxes that benefit aviation and airports. According to the Department of Transportation, the proposal would bring in $1.1 billion over five years. 


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