Tuesday, Aug. 03, 2010

No New Taxes — for Locals, That Is

Raising taxes is the kiss of death for politicians, but a sluggish economy means governments big and small need to find revenue somewhere — and who better to tax than those who are in no position to exact revenge on Election Day? According to the National Business Travel Association, the average hotel-room rate in the U.S. in 2009 was slightly more than $95, on which an average of $13 in taxes was levied. (The taxation would be more palatable if the money went to infrastructure that benefits travelers, but it doesn't necessarily.) The U.S. government, meanwhile, now charges certain foreign visitors $10 to enter the country and is looking into increasing the "passenger facility charge" added to every flight segment from $4.50 to $7.