Tondar's Daily Rant

Prepare yourself for the writings of Tondar the Destroyer, Baron of Atlanta, Rightful Heir to the Throne of Spain, from whom all babies come. As his will be blogged, so let it be done.

Monday, January 07, 2008

SETH ON THE DPT

Now that Mistress Angela is gone, it is time to get back to blogging. Not that I see myself having more time for the interwebs anytime soon. But in the meantime Seth put forward an interesting argument about a specific tax reform...

So in an election year, the most popular ideas are those that get rid of taxes, right?

How about reducing the Domestic Passenger Tax on all coach fares by half?

Currently, the tax is 7.5 percent of the price of the ticket, creating an average price hike for domestic coach travel of $33.75 per ticket.

So what's $16 bucks off a ticket going to do? Actually, that's the difference-maker for a lot of air travel decisions. And it relieves some of the pressure on airlines that are up against a market price ceiling but can't afford their own operations.

It's better than another bailout, right?

More people flying means more tourism money. It means companies send one more person to that industry conference, and that many more deals being struck. Added up, it's a huge economic difference.

Politically, this gets the tax cut directly that middle bloc of voters that a politician dreams of winning. With cheaper airfare, it would increase the U.S. economy, making us more competitive with Europe, which purposely keeps continental airfare low to boost trade. In fact, the cost of airfare is one of a few things that directly correlate to trade.

When you see Europe's economy thriving in a worse tax atmosphere than that of the U.S., you have to wonder what they're doing differently. Yes, James, I'm still on board with the trains thing. But their method of taxation -- focusing on luxury goods -- is a part of it, too.

We're going to cut taxes this year. Afterall, it's an election year. I figure the DPT is as good a start as any.

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