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REVENUE RECONCILIATION ACT OF 1997 (Senate - June 27, 1997)
Colloquy on Budget Reconciliation Bill (S. 949)

AVIATION EXCISE TAX

 Mr. McCAIN. Mr. President, I rise to express my concern about actions taken inthe reconciliation bills by the Senate Finance and the House Ways and Means Committees tomodify the current aviation excise tax structure. Although somewhat different from eachother, both of the proposed modifications would increase taxes on airline passengers, andrepresent significant changes in aviation policy.

Last year, Commerce Committee members worked closely with members of the Ways and Meansand Finance Committees, during consideration of the Federal Aviation Reauthorization Actof 1996, to establish the National Civil Aviation Review Commission. The members of thisCommission have dedicated themselves to developing a consensus within the aviationindustry regarding the appropriate financing mechanism for the Federal AviationAdministration [FAA], and the important safety programs it oversees. Together, thecommittees empaneled the Commission to consider substantive policy changes to the aviationexcise tax formula, and I believe that the Commission should be given every opportunity todo so. The reconciliation bill should not make substantive changes to the tax formulawithout the benefit of the Commission's work.

Mr. LOTT. Mr. President, I would like to agree with the distinguished chairman of theCommerce Committee, of which I am a member. The work of the National Civil Aviation ReviewCommission could result in a unique opportunity for an often divided aviation industry toreach a consensus on important funding issues. Congress should not force its will on theindustry prematurely.

The Commission is in the process of developing legislative recommendations, and plansto complete its work soon. Unfortunately, the reconciliation process is moving faster thanthe ability of the Commission to reach a comprehensive solution. The Commission recentlywrote to the leadership of both the Senate and House on this issue. We should ensure thatthe reconciliation bill, or budget rules, do not foreclose the ability to consider thecommission recommendations in the future. At that time, we will have a full and fairdebate on the recommendations themselves.

Mr. McCAIN. I thank the distinguished majority leader for his insight. I plan tocontinue to work with him and other members of the Commerce Committee to see that thebudget reconciliation bill does not foreclose the opportunity for Congress to implementthe Commission recommendations in the future. We must continue our efforts to ensure anadequate and stable funding source for the FAA and the safety programs it oversees.

Mr. DASCHLE. Mr. President, I would like to join my distinguished colleagues, themajority leader, the chairman and ranking member of the Commerce Committee, and thechairman and ranking member of the subcommittee, in expressing concern about thereconciliation bill preempting the work of the National Civil Aviation Review Commission.I appointed two of its members, and I would not like to see its important work underminedbefore it has had an opportunity to achieve a consensus to a very important issue. Ibelieve that after the recommendations of the Commission have been submitted to Congress,we must give them every consideration.

Mr. HOLLINGS. Mr. President, I, too, would like to join my distinguished colleagues inthis discussion. The leadership of the Commerce Committee worked very hard in the Senateand during the Senate-House conference to create this Commission. Congress even provided asubstantial appropriation to fund its activities. The work of the Commission is extremelyimportant. I know that my colleagues share my concern that aviation monies are not beingused for aviation purposes, and we need to work to correct that. During our CommerceCommittee markup recently, I expressed my desire to treat the Airport and Airways TrustFund differently, and many members indicated that we needed to do something different foraviation.

Mr. GORTON. Mr. President, as chairman of the Aviation Subcommittee, I would like toassociate myself with the remarks of the distinguished chairman and ranking member of theCommerce Committee, as well as with those of the majority and minority leaders. Anefficient FAA will be crucial if our country is to maintain its role as the world leaderin the aeronautical and aerospace industries. The FAA must have adequate resources totransform itself into an efficient and productive agency. The anticipated work of theCommission should provide the Congress with valuable guidance in that respect. Theproposed changes to the aviation excise taxes in the reconciliation bill should not be asignal to the commission that its ongoing work is meaningless. I intend to work with theleadership of the Commerce Committee and Senate to ensure that the future recommendationsof the Commission are not prejudiced by any actions taken in this reconciliation bill.

Mr. FORD. Mr. President, I would like to add to the thoughtful remarks of mydistinguished colleagues. We started the debate over how to fund the FAA last Congresswhen we first proposed a fee system. Senator McCain and I worked very hard on the bill andthe entire committee agreed that we needed a Commission to provide a blueprint for how tofund the FAA. The FAA bill last year restructured the agency and gave the FAA the abilityto do some creative things. Now the Commission must give us their best advice on how tomeet the needs of the FAA, or how to cut spending. Those are the dilemmas facing theCommission. I know all of us share a desire to ensure that the work of the Commission isdebated and fully aired.

Mr. McCAIN. I would like to thank the distinguished gentlemen for their remarks. Thesafety of the flying public and the health of an essential, vital industry are at stake.We must give the Commission a chance to fulfill its statutory mandate.