← Back to context

Comment by flakeoil

25 days ago

If you look into the details, in the US, aviation fuel is taxed very low and for international flights not taxed at all.

"Kerosene-based jet fuel used for commercial aviation (transporting persons or property for hire) is taxed at a reduced rate of 4.4 cents per gallon." [0] That is $0.044 per galon.

For cars the tax is between $0.31-$0.74 per gallon depending on state + federal tax of $0.184 so in total somewhere between $0.494-$0.924.

That means aviation fuel is taxed 1/10-1/20 of what car fuel is taxed. So in essence aviation fuel is barely taxed.

For international flights it is tax free: "The tax code provides statutory exemptions that result in zero or near-zero tax liability for specific fuel uses. Exemptions generally apply to fuel used in foreign international flights, military aircraft, governmental entities, farming, or by nonprofit educational organizations." [0]

[0] https://legalclarity.org/federal-jet-fuel-tax-rates-exemptio...