Taxation Without Representation … Again!

Think it’s costly to fly on a plane or run an airline today? Well, new reports late last week made clear that it could get even pricier when flying to or from Europe.

On June 27, a New York Times report noted that the European Union reached an agreement to force airlines – including U.S. airlines – using European Union airports “to buy pollution credits beginning in 2012,” joining other industries in Europe’s emissions regulatory scheme. Here’s a particularly scary line from the report: “Including airlines in the system is the boldest move yet by Europe to stamp its environmental policies on the rest of the world.”

Airlines, of course, already are struggling under high fuel prices, and are passing along surcharges on consumers. This measure would only raise costs further.

The Times article noted that the European Parliament and individual nations must still approve the measure, but these are expected to be mere formalities. More substantively:

American officials warned that the requirements probably would be illegal under the convention governing international civil aviation. “The mandatory application of the European Emissions Trading System to U.S. airlines and airlines of other non-European countries is, we think, both contrary to international law and ultimately unworkable,” said Robert Gianfranceschi, a spokesman at the United States Mission to the European Union in Brussels.

One estimate put the cost of this plan at $4 billion. That’s a massive tax on consumers and airlines, including U.S.-based companies.

Hey, wait a minute. July Fourth provides a reminder. Haven’t we been down this path before with Europe? Yes, it was called “taxation without representation.”

Let’s hope Mr. Gianfranceschi is correct, and that these taxes never become reality. Let’s also hope that tax friendly politicians in America don’t try to do something similar in their zealous crusade against carbon emissions.