Michael W. McCormick, executive director of the Global Business Travel Association (GBTA), testified before Congress against car rental taxes that increase business travel costs to fund local development.

            “Business travelers -- already a significant driver of revenue -- should not be the financing source for local projects, including sports stadiums, museums and performing arts centers unrelated to travel,” he said.

            McCormick testified before the House of Representatives Committee on Judiciary, Subcommittee on Courts, Commercial and Administrative Law at hearing focused on H.R. 2469, the “End Discriminatory State Taxes for Automobile Renters Act of 2011.”

            The bill proclaims that excise taxes on car rental consumers are unwarranted and would enforce a permanent halt on any new taxes. In August 2011, it was referred to the House Judiciary Subcommittee on Courts, Commercial and Administrative Law. Since Congress has enacted similar protections from discriminatory state and local excise taxes for other interstate travelers such as airline, train and bus passengers, GBTA agrees with the bill's sponsors that this is a logical and needed extension to protect business travelers.

            The business travel sector -- transportation, lodging, entertainment, meals, meetings and conventions -- is a significant component of the United States and world economies.

            “In 2012, however, GBTA projects that domestic business travel will lag to international,” McCormick said. “Policy, tax, and funding decisions made by Congress and the administration can have major impacts on the growth and success of domestic business travel -- an industry vital to the United States recovery. Enactment of H.R. 2469 represents one of those policy decisions."