UAL MEC Government Affairs Committee Update
Tonight, the President will deliver his State of the Union address before a joint session of the United States Senate and House of Representatives. For any political junkie this is a must see event. It is highly unlikely that the President will address the $9.21 billion that the U.S. airline industry reported in financial losses in 2004, but I can almost guarantee that he will state that the state of union is strong.
The U.S. national debt grew from $5.7 trillion in February 2001 to $7.6 trillion today (over $24,000 per citizen). In the year 2000, independent projections showed that the United States was headed towards a $5.6 trillion surplus. Unfortunately, fiscal policy, tax cuts and the cost of the war with Iraq, have washed away that budget surplus.
Keep in mind that almost all of the top Bush fundraisers are in the top 1 percent of the nation’s incomes and that they are those who benefit the most from the administration’s legislation reducing the top income tax rate, the capital gains rate and the elimination of taxation on dividend income. These tax breaks have saddled future generations with massive amounts of debt.
The President is likely to ask Congress for restraint in federal spending – which any fiscally responsible president should do - but what federal agencies and people helping programs will be put at risk?
From Congressional Quarterly
SENATE FINANCE MEMBERS GIVE COOL RECEPTION TO BUSH PLAN
Senate Finance Committee members of both parties today gave a somewhat chilly reception to President Bush's overhaul proposal for Social Security, with few Republican members defending Bush's plans. As she has done before, Republican Olympia J. Snowe of Maine expressed skepticism about Bush's plan to let young workers invest some of their Social Security payroll taxes in private investment accounts. Snowe criticized the president for using terms like "crisis" and "bankruptcy" to describe Social Security's outlook. "I do think it creates a level of fear among today's seniors that there's going to be some impact on their benefits," she said. Finance Committee Chairman Charles E. Grassley, R-Iowa, said it would be irresponsible for Congress not to address Social Security, but he did not endorse Bush's proposal. "If we go to work now, we can make incremental changes that will prevent the need for drastic action and more painful choices in the future," he said.
UNDER THE RADAR
Aviation Security Fee Proposed Increase
The President’s proposed budget reportedly calls for increasing the air travel security fee from $2.50 to $5.50 per segment, with a maximum of $8.00 per one way trip, up from $5.00 which air travelers pay today. The Aviation and Transportation Security Act of 2001 mandated two new security fees to help defray the government’s cost of new security measures. These fees include the $2.50 per segment passenger security fee and an Aviation Security Infrastructure Fee (ASIF) for passenger and baggage screening operations.
Air travel is already taxed at approximately 26 percent on an average $200 round trip ticket, and the airline industry and travelers now pay $3.2 billion annually for security. Travel security should be funded by the government just as other national security programs are and additional air travel security fees will clearly burden an already crippled U.S. aviation industry.
Department of Agriculture Increases Passenger and Aircraft Inspection Fees
The Department of Agriculture has increased the Agriculture and Plant Health Inspection Service for international passenger travel and aircraft inspections. The new tax increase means international travelers will pay an additional $1.85 per flight, an increase from $3.10 to $4.95 per flight. For carriers, aircraft inspection fees will increase from $65.25 to $70, with more increases expected. Because U.S. airlines have limited ability to pass these taxes along through higher ticket process this federal tax increase further undermines the financial recovery of U.S. airlines.
Homeland Security Department Issues New Personnel Regulations
On January 25, the Department of Homeland Security issued new regulations which significantly limit basic employee rights and protections, including collective bargaining rights of employees. The regulations all but eliminate the due process rights that enable employees to speak up about mismanagement or wrongdoing; replace salaries based on a worker’s seniority with a merit pay system; and give managers broad authority to change employee shifts and duties without notice.
The American Federation of Government Employees (AFGE) plans to challenge these new regulations on both a statutory and constitutional basis.
109th CONGRESS
Sadly, Representative Peter DeFazio (D-OR) will no longer be ranking member of the House Aviation Subcommittee. He has moved over to be the ranking member of the Highways Subcommittee, but he still intends to play an active role in aviation issues and a prominent role on the full Committee. The new ranking member (highest ranking Democrat) of the Aviation Subcommittee will be Jerry Costello of Illinois. Representative Costello has been a long time friend and supporter of AFA.
Representative John Mica (R-FL) will remain the chair of the House Aviation Subcommittee.
Senator Ted Stevens (R-AK) replaces Senator John McCain (R-AZ) as the Chair of the Senate Commerce, Science and Transportation Committee. With Senator Ernest Hollings (D-SC) retirement, Senator Daniel Inouye (D-HI) becomes the Ranking member on the committee.
Unofficial List of new members of the U.S. House of Representatives
CALIFORNIA - Dan Lungren (R) Jim Costa (D)
COLORADO - John Salazar (D)
FLORIDA - Connie Mack (R) Debbie Wasserman Schultz (D)
GEORGIA - Cynthia McKinney (D) Tom Price (R) Lynn Westmoreland (R)
John Barrow (D)
ILLINOIS - Daniel Lipinski (D) Melissa Bean (D)
INDIANA - Michael Sodrel (R)
KENTUCKY - Geoff Davis (R)
LOUISIANA - Bobby Jindal (R) Charlie Melancon (D) Charles Boustany, Jr (R)
MICHIGAN - Joe Schwarz (R)
MISSOURI - Russ Carnahan (D) Emanuel Cleaver D)
NEBRASKA - Jeff Fortenberry (R)
NEW YORK - Brian Higgins (D) John “Randy” Kuhl (R)
NORTH CAROLINA - Virginia Foxx (R) Patrick McHenry (R)
OKLAHOMA - Dan Boren (D)
PENNSYLVANIA - Michael Fitzpatrick (R) Allyson Schwartz (D) Charles Dent (R)
SOUTH CAROLINA - Bob Inglis (R)
TEXAS - Louie Gohmert (R) Ted Poe (R) Al Green (D) Michael Conaway (R) Kenny Merchant (R) Henry Cuellar (D)
VIRGINIA - Thelma Drake (R)
WASHINGTON - Cathy McMorris (R) David Reichert (R)
WISCONSIN - Gwen Moore (D)
If you have any questions, comments or concerns, please feel free to contact me.
In Solidarity,
Debbie Golombek
UAL MEC Government Affairs Committee
