Equity……………………………..........YES/NO

Efficiency…………………………........YES

Simplicity…………………………........YES

Fair Revenue Generation………....YES/NO

Effective Stimulus to Growth…...YES
 

The transportation and lodging sectors of the tourism industry have been especially hard hit by the events of September 11. A targeted fiscal stimulus in this case seems appropriate to revitalize a sector of the economy whose recovery is vital to rebuilding consumer confidence and thereby stimulating an overall economic recovery. The personal travel tax credit component of the Travel American Now Act of 2001 adheres to three of the five Principles of Intelligent Taxation, with the possible exceptions of Equity and Fair Revenue Generation. These two principles are inherently at odds with the majority of tax credit proposals, which are generally targeted at specific industries. Provided the eligibility period is increased past the end of the year, this tax credit would be a positive step towards revitalizing the nation’s Travel & Tourism industry.

We recommend that the panel endorse this tax credit proposal.