WASHINGTON, D.C. -- United States Senator Daniel K. Inouye is an original cosponsor of a bill to amend the Taxpayer Relief Act of 1997, which would reinstate the 10% ticket tax on domestic flights and eliminate the segment fees for flights to, from and within Hawaii and Alaska.

"I am pleased to lend my support to Senator Frank Murkowski's bill that would amend Public Law 105-34, the Taxpayer Relief Act of 1997, with respect to domestic aviation travel to, from, and within Hawaii and Alaska. Hawaii, unlike any other state, save Alaska, does not have the transportation alternatives that are available to citizens of other states. Roads, bridges, trains, and buses do not operate between the islands of Hawaii. This geographic difference causes any tax imposed on the cost of flying, our citizens' only means of getting from one island to another, to fall disproportionately on our citizens," said Senator Inouye.

This bill would correct any injustice imposed upon the citizens of Hawaii and Alaska, perhaps inadvertently, as a result of last summer's passage of increased excise taxes on air transportation. Specifically, the Taxpayer Relief Act of 1997's provision for the collection of an additional segment tax for each segment of air travel among the Hawaiian Islands disproportionately penalized Hawaii citizens.

"I will continue to pursue the reinstatement of the pre-Act formula for computing taxes on domestic segments that begin or end in Alaska and Hawaii, which would correct the inequitable tax treatment of Hawaii passengers under the current law. It is my hope that my colleagues will support this measure during the second session of the 105th Congress," stated Senator Inouye.