Tax News

CCH (cch.taxgroup.com) reports:

The Senate on June 26 approved by unanimous consent the Federal Aviation Administration Extension Bill of 2008 (HR 6327), which would lengthen a four-month extension of federal aviation excise taxes and fees until the end of September 2008. The last extension of the aviation excises taxes occurred on February 28, when President Bush signed the Airport and Airway Extension Act of 2008 (P.L. 110-190). The House earlier approved the measure on June 24 (TAXDAY, 2008/06/25, C.2).
Rising jet fuel prices have driven airlines to raise ticket prices, leading to a higher amount of aviation taxes collected to fund the Airport and Airway Trust Fund. However, HR 6327 keeps the same tax rates in effect as current law, and the extra revenue has been directed to address problems with airport congestion and airport runway improvements.
House Democrats were able to win Republican support for the measure by deleting a provision that would have transferred $8 billion to the highway trust fund. Senate Finance Committee Chairman Max Baucus, D-Mont., strongly condemned the Senate's failure to reach agreement on his trust fund legislation."Replenishing the highway trust fund now would prevent the loss of an estimated 380,000 jobs, create new ones, and do so without increasing the federal budget deficit," stated Baucus.
By Jeff Carlson, CCH News Staff.