US: Senate bill includes a new tax on some foreign carriers

A years-long feud between US-based carriers and airlines from the Persian Gulf has found its way into the highly politicized debate over the tax plan.<br/>Deep in the US Senate’s 515-page tax bill is a passage that imposes a new tax on some foreign carriers. The language was introduced by a senator from Georgia, the home state of Delta, which has been calling for limits on rival carriers from the Middle East. Sen. Johnny Isakson (R-Ga.), said the provision he introduced would “protect Georgia airline employees by ending a tax exemption for airlines based in countries that deny fair market access for US-based airlines.” The provision does not name the three Gulf carriers — Etihad, Emirates and Qatar airlines — that Delta and other US carriers have long accused of competing unfairly in the US by accepting subsidies from their oil-rich government owners. Still, Isakson's staff said the change is intended to target those carriers. The Gulf carriers deny the accusations that they are heavily subsidized. In a statement, Isakson said his provision would raise $200m from the airlines, which would help pay for tax breaks for US taxpayers.<br/>