Washington D.C. February 16, 2011 - U.S. President Barack Obama submitted the draft federal budget to Congress with a proposal to impose a $5.50 fee for Canadians crossing the border by air or by sea. If approved the new border tax, or "passenger inspection fee" would bring an extra $110 million to Federal coffers.
Visitors from Canada, Mexico and several Caribbean countries had to pay a similar passenger inspection fee back in 1994 under NAFTA but were exempted in 1997 at the insistence of a group of congressmen who argued that it was bad for cross-border business. However, Obama's draft budget proposal for fiscal year 2012 proposes to lift this exemption. Although President Obama and Canadian Prime Minister Stephen Harper recently met to discuss ways to improve border flow and trade, as well as establishing a national security perimeter, the draft budget proposal came as a surprise to many Canadians and is sure to be debated.
Visiting Tax for Canadians is "Troubling"
Things haven't gotten any easier for Canadian travelers since 2009 when an entry law to the U.S. required Canadians to carry passports. The new proposed fee would not apply to Canadians driving across the border. Approximately 16 million Canadians fly across the U.S. border each year and the proposed fee would help pay for increased U.S. border security. "The raising of any fees on the Canada-U.S. border is troubling" said Birgit Matthiesen of the Canadian Manufacturers and Exporters, Canada's largest trade and industry association. Colin Robertson, a fellow of the Canadian Defence and Foreign Affairs INstitute who was part of the team that negotiated the North American Free Trade Agreement (NAFTA) with the United States said, "They will be looking everywhere to find money...given the desperate financial situation the States is in...we should make a joint cause with Mexico."
Proposed Budget Draft Plans to Bring in Fresh Revenue to Pay Debt
After one of the worst recessions in years President Obama plans to rebuild the American economy by cutting wasteful spending. With the clear message that Americans should live within their means, the budget is about "making tough choices on some things we cannot afford."
The $3.7 trillion plan proposes to trim or eliminate about 200 federal programs. New budget priorities include spending on education, energy and medical research. The budget proposal has Obama relying on new taxes to improve the government's finances in the long term with $1.6 trillion in new revenues, such as the resuscitating the passenger fee that was suppressed in 1997.
Giovanna De Gennaro - Giovanna is a Canadian citizen who has travelled and worked abroad. She speaks four languages and has worked as an EFL teacher in Italy. ...
Join the Conversation