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Congressman Earl Blumenauer Formally Introduces Legislation to Tax Commercial Space Exploration

April 18, 2022

WASHINGTON, D.C. – Today, U.S. Rep Earl Blumenauer (D-OR), a senior member of the Ways and Means Committee, introduced the Securing Protections Against Carbon Emissions (SPACE) Tax Act to create new excise taxes on commercial space flights carrying human passengers for purposes other than scientific research.

"Space exploration for recreational purposes isn't a tax-free holiday for the wealthy. Just as Americans pay taxes when buying airline tickets, billionaires flying into space to produce nothing of scientific value should do the same," said Blumenauer. "I am also concerned about the impacts of recreational space travel on carbon emissions. It makes sense that this kind of travel, done purely for tourism and entertainment, ought to support the public good."

The SPACE Tax Act establishes a new excise tax regime on commercial space flights that is structured like excise taxes for commercial aviation. It would establish a 10 percent per-passenger tax on the price of a commercial flight to space. By comparison, passengers taking domestic airline travel trips pay a 7.5 percent excise tax and a segment tax for each segment flown. The legislation includes a two-tiered excise tax for each commercial launch carrying humans into space. Each launch into orbit (exceeding 80 miles above the Earth's surface) would be liable for a $2 million launch tax and each suborbital space launch (between 50 and 80 miles above the Earth's surface) would be liable for a $100,000 launch tax, both adjusted to inflation. Crew and government astronauts would not be required to pay the tax.

Click here for a full fact-sheet on this legislation.

Issues:Tax Fairness