View Full Version : Thomas Massie at Transportation Committee Hearing 3/1/17

03-02-2017, 11:27 AM
At 1:02:46:


More about PFC (passenger facility charge):

Reps. DeFazio, Massie Introduce Smart Financing Legislation for Airports

Marc Scribner
March 1, 2017

Earlier today, Rep. Peter DeFazio (D-OR), the ranking member of the House Transportation and Infrastructure Committee, and committee member Rep. Thomas Massie (R-KY) announced a bill that would uncap the airport passenger facility charge (PFC), which would allow airports to charge passengers greater than the current $4.50 per enplanement fee.

The bill would also cut $400 million from Airport Improvement Program (AIP) grants. In exchange for the ability to charge above $4.50 per enplanement if they so choose, large hubs would need to forgo AIP funds.

CEI and a number of other libertarian and conservative groups—as well as good-government center-left groups—have been vocal supporters of PFC modernization. We view it as a local user charge—not a tax, as some opponents have falsely claimed. Only passengers are charged and passengers are the beneficiaries of the airport improvements PFCs generate. This is the classic users-pay/users-benefit definition of a user fee. Many airports are also reaching their debt limits, and PFCs can provide a revenue stream for bonds, allowing airports to re-enter the debt market and finance needed improvements.