Biden Calls for Taxation of Private Space Companies
President Joe Biden has proposed a significant change in aviation tax laws to include private space companies like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin. These companies, known for their commercial space launches, currently do not contribute to aviation excise taxes that fund the Federal Aviation Agency (FAA).
FAA Struggles to Keep Up with Space Launches
The FAA is facing challenges in managing the increasing pace of space launches. With SpaceX dominating the commercial space sector and the industry expected to grow substantially, the agency is struggling to keep up with the demand for air traffic control resources during launches.
SpaceX Dominance and Industry Concerns
SpaceX’s dominance in the US commercial space sector raises concerns about the impact of the proposed tax. While Biden aims to ensure that the wealthy and big corporations pay their fair share, industry partners argue that taxing the spaceflight industry at this stage may not be appropriate, considering the sector’s early fragility and minimal time spent in commercial airspace.
Overall Impact and Future Tax Structure
President Biden’s proposal is part of a broader overhaul of the aviation excise tax structure, which also targets private and corporate jet owners. The tax increase on fuel proposed by Biden aims to ensure equitable contributions from various aviation sectors, as the industry continues to evolve and expand.