Sunday, April 22, 2012

Overtaxed at the Airport

Take a look at this round trip to Toronto from DC:


Fare Summary

Departing Flight
PD 724
Base Fare (1 x $ 129.00):
$ 129.00
$50 Discount
- $ 50.00
Taxes & Fees
 
NAV and Surcharges
$ 7.50
Passenger Facility Charge
$ 4.50
Sep 11th US Security Tax
$ 2.50
US Segment Tax
$ 3.80
US transportation Tax
$ 6.49
Subtotal
$ 103.79

Returning Flight
PD 727
Base Fare (1 x $ 129.00):
$ 129.00
$50 Discount
- $ 50.00
Taxes & Fees
 
Air Traveller Security Charge
$ 12.70
NAV and Surcharges
$ 17.50
Airport Improvement Fee
$ 20.00
Harmonized Sales Tax
$ 2.60
US Agriculture Tax
$ 5.00
US Immigration Tax
$ 7.00
US Customs Processing Fee
$ 5.50
US Segment Tax
$ 3.80
US transportation Tax
$ 7.24
Subtotal
$ 160.34

Total
$ 264.13

A flight to Toronto from DC results in nearly $25 in taxes and fees. A flight back to DC? If we exclude what I am presuming is a fee specific to Dulles (the Airport Improvement Fee of $20), taxes and fees come to $61.34, or 247% more than a flight to Toronto.

You may look and say that obviously we should be charging fees for immigration and customs. My retort would be, why? Canada sees no need to do so. Perhaps they have a more rational immigration system? I've previously stated that I believe this to be the case given their visa granting process for graduates from their universities. Basically, they do their best to retain talent, unlike the US, with its inane quotas to "protect American jobs" that result in talent we train from abroad returning abroad rather than staying here and creating new jobs! Or perhaps, to be more charitable to Immigrations and Customs, the fee is hidden elsewhere in the Canadian budget?

And then there are other questions I would have - why do I have to pay an agriculture tax? What does that have to do with flying into DC? Why the security charge for DC but not for Toronto? Presumably Canadians care about security, so why are we charging extra? Same with the NAV and surcharges, at $17.50 for DC versus $7.50 for Toronto. Are we that inefficient and bloated?

That is my opinion - we are bloated and overtaxed at the airport because of security theater.

I'll leave you with a few articles and blogs: