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Turism&Travel : Airline industry warns âsuper committeeâ about raising taxes

WASHINGTON â Lobbyists for America's senior citizens, oil companies and airlines had a message Sunday for the special joint congressional committee trying to forge a comprehensive deficit reduction plan: tread carefully.
In an appearance on CNN's âState of the Union,â lobbyists for the AARP, American Petroleum Institute and Air Transport Association cautioned that possible options including tax increases and spending cuts could harm their constituencies. Sean Kennedy of the Air Transport Association warned against raising taxes on âan industry that is the third largest contributorâ to economic output. âThe airline industry is one that has shed one-third of its workforce,â Kennedy noted, adding that âproposals circulating would impose another $36 billion in taxes.â In defense of the possibility of increased airfares, Kennedy claimed that âairline prices have been much lower than inflation over the past 10 yearsâ and argued that âair travel is still a relative bargain.â Each of the men made their own recommendations for the so-called âsuper committeeâ responsible for recommending $1.5 trillion in deficit reduction by November 23, with the penalty of deep spending cuts across the board - from defense to education budgets - if they fail to reach an agreement. Kennedy pledged that airlines are âgoing to live with whatever the âsuper committee' gives us,â but also warned of an impact on âinvestments in aircraft, jobs, and in service.â Source: CNNAutor: eTurboNews |

