TSA Raises Passenger Fees

July 28, 2014

The Transportation Security Administration (TSA) is raising passenger fees, adding to the taxes that fliers pay when purchasing a plane ticket, explains Lyman Stone, economist at the Tax Foundation.

Previously, the TSA imposed a $2.50 fee on all passengers on nonstop flights, but as of July 21, 2014, the fee has risen to $5.60 for all flights, both nonstop and connecting. The per-passenger fee is just one of many that airline ticket purchasers pay, as airports impose facility charges and passengers pay excise taxes on tickets. Additionally, fuel taxes -- which vary among states -- are reflected in a person's ticket price.

The increase comes as a result of a budget deal agreed to by Congress in December, and the agency believes that the fee will raise $16.9 billion in additional revenue.

Passengers have reacted negatively to the fee hike, with some pointing to the fact that the TSA recently purchased expensive equipment that had to be discarded, reports USA Today. Airline and travel groups have also opposed the fee increase.

Source: Lyman Stone, "Transportation Security Administration Fees Rise Today," Tax Foundation, July 21, 2014; Bart Jansen, "TSA security fee on airline tickets rises Monday," USA Today, July 22, 2014. 

 

Browse more articles on Tax and Spending Issues