With so much discussion about the so-called fiscal cliff and its impact on the country, one overlooked question is its meaning for travelers.
Plunging off the cliff could, according to one expert, have a huge impact on how many trips people take.
Right now, people aren’t sure how to budget for 2013, in part because tax rates remain in flux, experts suggest. The higher the taxes, the less disposable income people have, which could translate to less travel.
“As we enter the New Year, one unknown for travel is the looming ‘fiscal cliff’ and the resulting uncertainty related to near-term tax and benefit changes,” AAA President and CEO Robert Darbelnet said in a release earlier this month. “Having these items unresolved complicates many travelers’ ability to develop an accurate household budget as they plan for future spending and saving decisions. It is important that Congress and the President work together to quickly resolve the situation for the good of the nation.”
The U.S. Travel Association is calling on lawmakers to avert the cliff, improve the predictability of the market, and reduce the budget deficit.
The association also warned that budget cuts to U.S. Customs and Border Protection, the Transportation Security Administration (TSA), the Federal Aviation Administration (FAA) and the Federal Highway Administration (FHA) could result in bad travel experiences.