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new air/sea tax to be imposed by USA Govt


scottbee

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You should have posted, Looks like the US government want to make it even more expensive for CANADIANS entering the US by air or sea.

 

It applies to anyone flying from Canada. It strikes me it's more protectionist US policy designed to encourage people to drive across the border. Operators at BLI, BUF & PBG are probably giddy with excitement.

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First, it's a proposal in the draft budget and may never see the light of day. To say "to be imposed" implies that it's been adopted, which it has not.

 

Second, it would bring the taxes imposed on travel from Canada in line with those imposed on travel from most other countries. The proposal eliminates an exemption that has been in place for travel from Canada. It's not a new tax aimed solely at Canadians.

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This protectionism shouldn't come as any big surprize to Canadians. It first surfaced during the presidential election. Right from the starting gate, Obama was talking about all sorts of measures. He's got a massive debt and what better way to earn revenue than from non-US citizens. However, protectionist practices seldom work in the long run.

 

I travel to the US often as I have lots of family there. It isn't about the money because it isn't much, but it IS inconvenient. For me, it's about the slap in the face to one of their biggest trading partners as well as a long standing ally.

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You should have posted, Looks like the US government want to make it even more expensive for CANADIANS entering the US by air or sea.

 

The Canadian media are (what a shock, I know ;)) missing something. As scottbee & njhorseman have pointed out, this would be a tax on all travellers, and there are already two of these imposed by the US on flights to/from Canada (agriculture & immigration fees). Unless the mechanism were changed, there would be no way to include the new fee as part of the ticket (which is what is being reported) only for Canadians but not for US citizens.

 

Try pricing out a roundtrip airfare from a Canadian city to a US city. Now do the itinerary in reverse, originating in the US. You'll see that the ticket that starts in Canada is more expensive because of GST/HST. If you're on the Air Canada site, try changing the 'country of residence' drop-down menu from Canada to United States -- the fare does not change.

 

But that's nothing. What Canadians should really be upset about is the cost of flying out of Toronto or Vancouver, as opposed to Buffalo or Bellingham (and don't even get me started about domestic Cdn airfares). And some are, as more and more people are voting with their feet and driving across the border to fly out of US airports and save $$$.

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Second, it would bring the taxes imposed on travel from Canada in line with those imposed on travel from most other countries. The proposal eliminates an exemption that has been in place for travel from Canada. It's not a new tax aimed solely at Canadians.
And I therefore can't see what's "protectionist" about this.
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And I therefore can't see what's "protectionist" about this.

 

It's seriously 'protectionist'. It defends the air carriers operating from border airports like BLI, BUF & PBG. Considering we're supposed to have a 'free trade' agreement it's a giant slap in the face when you consider that Canada's 3 busiest airports are all less than 100km from the border.

 

I'm also fed up with reading how expensive it is for Americans to fly into YVR (vs SEA); and them blaming it on Canadian taxes, when there are often more US taxes on the ticket than Canadian.

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It's seriously 'protectionist'. It defends the air carriers operating from border airports like BLI, BUF & PBG. Considering we're supposed to have a 'free trade' agreement it's a giant slap in the face when you consider that Canada's 3 busiest airports are all less than 100km from the border.

 

I don't think the aim of the fee was to draw customers across the border to US airports -- $5.50 doesn't even cover the gas, and it's not exactly the tipping point when Canadians can save $100s by flying out of US airports in many instances. Will it be a byproduct? If people believe the hype that the media are stirring up, perhaps. It doesn't help Canadian airports or airlines, that's for sure, but then that's not what governments are generally in the business of doing.

 

And one could argue that Canada has some protectionist legislation in place as well. A Canadian resident who flies SYR-SEA or BUF-BLI cannot rent a car in the US and drive it across the border into Canada.

 

I'm also fed up with reading how expensive it is for Americans to fly into YVR (vs SEA); and them blaming it on Canadian taxes, when there are often more US taxes on the ticket than Canadian.

 

Agreed. It's the nature of flying transborder, in either direction.

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And one could argue that Canada has some protectionist legislation in place as well. A Canadian resident who flies SYR-SEA or BUF-BLI cannot rent a car in the US and drive it across the border into Canada.

 

Sorry but your arguement won't fly. Last year we were going out to BC to visit a daughter. After checking many departure points, we decided on AirTra out of Buffalo to Seattle. Our plan was to rent a car and take the ferry to Vancouver Island. No can do. A Canadian cannot rent a car in the US and take it across the border into Canada. BUT - the same is true for Americans. They cannot rent a car in Canada and take it into the US. No double standard there because the same rule applies to both.

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Sorry but your arguement won't fly. Last year we were going out to BC to visit a daughter. After checking many departure points, we decided on AirTra out of Buffalo to Seattle. Our plan was to rent a car and take the ferry to Vancouver Island. No can do. A Canadian cannot rent a car in the US and take it across the border into Canada. BUT - the same is true for Americans. They cannot rent a car in Canada and take it into the US. No double standard there because the same rule applies to both.

 

Wasn't aware this had changed. Years ago (before moving to Canada and becoming a dual citizen) I rented a car at YVR and drove across twice into the US with no issues. I contacted US customs with this question in 2009 and was advised it could still be done.

 

FWIW I don't think the Canadian legislation is protectionist. The law is intended to make sure that all vehicles imported into Canada are properly documented and taxes paid. The unintended consequence is that Canadians can drive neither a rental car with US tags nor even a privately owned car (such as my sister's car plated in WA) into Canada.

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TSA groping needs to be paid for...search without grounds is not only illegal it is useless..now they want us to pay for it too

 

Yeah, great reasoning :rolleyes: FYI the "groping" is only done if you're chosen for further screening and refuse the body scan (which I've done with no problems at all). Funny how now that the the media hysteria has gone away you don't hear anything about this any more. No one is forcing you to fly to the US dude. If it's so offensive to you, just avoid it.

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http://www.cbc.ca/world/story/2011/02/16/obama-budget-canada-fee.html

 

Looks like the US government want to make it even more expensive for people entering the US by air or sea. Already the US Government charge air travelers an "Immigration Fee" & "Agricultural Inspection Fee", now they want a 3rd one.

 

It is a proposal in the budget. The required legislation has not actually been drafted, the bill has not been introduced into congress, the bill has not gone through committee, it has not passed, it has not gone to conference, and all of this is unlikely with the no-tax attitude of congress.

 

You are worried about something that is not going to happen.

 

DON

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http://www.cbc.ca/world/story/2011/02/16/obama-budget-canada-fee.html

 

Looks like the US government want to make it even more expensive for people entering the US by air or sea. Already the US Government charge air travelers an "Immigration Fee" & "Agricultural Inspection Fee", now they want a 3rd one.

 

Outstanding!

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