[Congressional Record Volume 141, Number 169 (Monday, October 30, 1995)]
[Extensions of Remarks]
[Page E2069]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 BUDGET CONFEREES SHOULD SUPPORT THE HOUSE-PASSED 2-YEAR EXTENSION OF 
                           JET FUEL EXEMPTION

                                 ______


                            HON. SAM JOHNSON

                                of texas

                    in the house of representatives

                        Monday, October 30, 1995

  Mr. SAM JOHNSON of Texas. Mr. Speaker, over the past 5 years our 
airlines have posted losses of over $13 billion. This has caused almost 
one-half of those to file for chapter 11 bankruptcy with three of them 
closing their doors completely. Because of these financial setbacks and 
heavy Government mandates, over 120,000 U.S. jobs have been lost.
  Therefore, I believe that budget reconciliation conferees should 
support the House-passed measure that extends for 2 years the exemption 
of the aviation jet fuel tax. This new tax was supported by the 
Democrats and the Clinton administration and passed as part of the 
Omnibus Budget Reconciliation Act of 1993. I believe that this new tax 
will further burden the airline industry by imposing an additional $500 
million in new taxes in addition to the $6.5 billion in excise taxes 
they already pay. To deny this extension could prove detrimental to the 
future of our airline industry when for the first time in 5 years they 
are showing slight improvements.
  That is why it is so important that our budget conferees support the 
House-passed jet fuel extension that would give the airlines 2 years, 
not 17 months, to get back on the road to prosperity. The airlines are 
already facing a huge tax burden that affects their ability to operate 
and increases, by a substantial amount, the cost of traveling for all 
passengers. By delaying this tax, and eventually its repeal, we will 
help the airlines recover from a disastrous 5 years of losses, create 
more jobs, and decrease the travel cost for their passengers. I hope 
that my colleagues and the budget conferees will support the House 
position and eventually push for full repeal of this devastating tax.

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