February 18, 2011

Welcome to your world, Canada

"That will be $5.50 (U.S.) please."

That's what Canadians will be charged in the way of a travel fee President Obama has proposed for the 2012 budget. I don't think it's much of a news story in the U.S. from what I can tell. But in Canada? Wow! People are pissed. I've been entertained by reading the comments following news stories in the Globe and Mail and National Post. I have not been this entertained since watching ten minutes of Glenn Beck's show the other day. There's some serious misinformation going on. I know, I know. This is a family blog. I talk about stuff in our family. But, every once in a while there comes a subject -- a subject relating to the U.S. and Canada and I have to speak out. This is probably a good time to say that the political opinions expressed in this blog are expressed by the writer of this blog (Kish) and not always the entire family. There. I said it. 

I'm amused at the irony.

I mean, I feel like once a day I get a tax bill of some sort. I'm truly Canadian when I say to Paul as a lawyer invoice comes in the mail..."Holy crap, did you know lawyers have to charge sales tax?" It's true, they do. It's called a goods and services tax and we are taxed on everything. They guy who mows the lawn in the summer? Yup, goods and services tax on top of all that. We are used to it by now.

Prime Minister Stephen Harper has made comments about it being a bad idea. Sort of funny when you think about the fees and taxes he institutes in Canada.

Yes, I know, we have "free" health care in Canada. If you're a regular reader of this blog you know that I love Canada. I've come to accept Canada and the taxes. I'm cool with it really. I actually don't mind the health care situation in Canada. I've embraced life here...and the water tax bill, the welcome to Quebec tax (true), the yearly driver's licence renewal fee (which is more if you accidentally went through a stop sign have any traffic violations, $700/month plus tax to heat the house, the new, annual "car" tax, double digit sales tax, and more. Did I mention $24 for a case of beer? Canadian beer? As Tony Soprano says, "it is what it is." We just deal with it. We have health care and affordable secondary education compared to the U.S. It all comes out in the laundry, so to speak.

So, as I mentioned, this new proposed $5.50 U.S. travel fee has Canadians really upset. They think they are bailing out the US economy, and they should not have to bail out the neighbors to the south. Because after all we are friends. Think of it like a cover charge for a party. Canada thinks it would be like your brother making you pay a cover charge to go to a party in your own neighborhood. You just don't treat family like that. Well, in my family we did, but that's another story.

Here are some details of this travel fee...

Since 1997, Canada, Mexico and the Caribbean have been exempt from paying a document inspection fee to fly or arrive by ship to the U.S. Other travelers to the US do pay a fee and will continue to do so. We all know the U.S. economy is in the toilet is trying to rebound. So, Obama proposes this $5.50 fee for people traveling from Mexico, the Caribbean and Canada. Seriously, $5.50. That's like a cup of coffee and a small box of Timbits at Tim Horton's (with tax). It's estimated that in 2009 16 million Canadians flew into the U.S. Yes, I know, that's a nice number. They also spend a lot of money in the U.S. and we love Canadians. The U.S. government estimates this new fee will generate $90 million from Canadians alone. Many Canadians have the impression though that they are "bailing" out the U.S. Frankly, this is chump change compared to the deficit in the U.S. I mean, some professional sports contracts out there worth more than $90 million when all is said and done.

But here's the irony...have Canadians taken a look at what it costs to fly in and out of Canada and for the privilege of using a Canadian airport? We pay $25 each and every time we use Montreal's airport. You want to talk taxes? Holy crap.  It's not uncommon for the taxes and fees in Canada to be 25 percent or more of a fare. And you want to use miles? You pay the taxes and fees anyway. And, the news of this $5.50 fee came the same week CTV ran a story about the number of Canadians choosing to drive across the border to take flights out of U.S. airports because they can save thousands -- thousands of dollars in airfare and fees for a family. Yes, U.S. carriers charge baggage fees. That does kind of suck. But, have you tried carry-on? Or better yet, try and ship the contents of a suitcase from Canada to the U.S. via Canada Post. Have fun with that...baggage fees are a bargain in comparison.

Just for the heck of it...I went on United Airlines and checked a flight from Chicago to Montreal...leaving March 11 and returning March 18. To fly in and out of Montreal the fare is $717.03 with $68.20 in taxes and fees. (all dollars are American). To fly in and out of Burlington, Vermont (less than a 2 hour drive) it's $448 and $21.20 in taxes and fees. If you are a family of five...do the math.

And this is before the $5.50 fee Obama has proposed for the 2012 budget, which still has to pass.

My point?

Welcome to your world, Canada. A $5.50 fee is not a big deal and will help the U.S. Department of Homeland inSecurity. Will it bail out the U.S. deficit? It won't make a dent. But it is something. Is it a slap in the face as some have said? Perhaps. But, we're talking $5.50! (A slap in the face was receiving a "Welcome to Quebec" bill weeks after we bought this house -- essentially it's a sales tax on the price of your home).

Besides, you'll spent more to buy a beer at the airport in Montreal. Just think what you'll save being in the U.S., you can easily get a beer in Milwaukee for less than $5.50. And if you don't like that, fly over Florida and go to Cuba. But wait, there's a $25 departure tax there.

Just for fun...here's some bullshit explanation from the Air Canada website on what the fees mean.....

What are the additional charges in my Fare?


Fuel NAV Canada Insurance ATSC Airport Fees International Destinations
Note: This information is intended as a guideline only. Actual fees and surcharges are subject to change and some exceptions apply.


Your fare may include NAV CANADA surcharges, fuel surcharges and insurance surcharges where applicable. Ticketable Airport Improvement Fees and the Air Travellers Security Charge (ATSC) are included in taxes component of your fare.




Canadian and US Destinations


Fuel Surcharges: For travel within Canada and between Canada and the United-States, fuel surcharges are now included in the ticket price. For International travel, fuel surcharges vary according to destination.


NAV Canada Surcharge: NAV surcharges within Canada are either 9 / 15 / or 20 CAD based on distance. For transborder itineraries, 7.50 CAD / 7.50 USD each way. This surcharge is collected to cover the fees that Air Canada pays to NAV Canada to operate Canada's Air Navigation systems.


Insurance Surcharge: In order to account for the rising costs of aviation insurance, Air Canada along with other North American carriers have implemented an insurance surcharge. This insurance surcharge is 3 CAD, each way for travel wholly within Canada. (Some exceptions apply).


ATSC: The Canadian Parliament has enacted the Air Travellers Security Charge Act to fund security personnel and security equipment in response to the events of September 11. For domestic itineraries, the ATSC is 7.12 CAD one-way to a maximum charge of 14.25 CAD. For transborder itineraries, the ATSC is 8 CAD / 7 USD one-way to a maximum charge of 16 CAD / 14 USD.


Airport Improvement Fees: Many airports in Canada and around the world have implemented Airport Improvement Fees (AIFs). Some airports collect these fees at the airport at time of departure, others are collected at the time of ticketing and are reflected in the additional charges portion in your fare. Canadian airports that include the AIF on your ticket are as follows: (All amounts in CAD)


Bagotville, Que. (YBG) $20
Baie-Comeau, Que. (YBC) $10
Bathurst, N.B. (ZBF) $40
Calgary, Alta (YYC) $22
Castlegar, B.C. (YCG) $7
Charlottetown, P.E.I. (YYG) $15
Comox, B.C. (YQQ) $5
Cranbrook, B.C. (YXC) $10
Deer Lake, N.L. (YDF) $15
Edmonton, Alta (YEG) $20
Fort McMurray, Alta (YMM) $20
Fort St. John, B.C. (YXJ) $12
Fredericton, N.B. (YFC) $20
Gander, N.L. (YQX) $20
Goose Bay, N.L. (YYR) $20
Grande Prairie, Alta (YQU) $12
Halifax, N.S. (YHZ) $15
Hamilton, Ont. (YHM) $20
Kamloops, B.C. (YKA) $10
Kelowna, B.C. (YLW) $10
Lethbridge, Alta (YQL) $12
London, Ont. (YXU) $15
Moncton, N.B. (YQM) $15
Montreal, Que. (YUL) $25
Mont-Joli, Que. (YYY) $5
Mont Tremblant, Que. (YTM) $20
Moosonee, Ont. (YMO) $7
Nanaimo, B.C. (YCD) $10
Ottawa, Ont. (YOW) $15
Prince George, B.C. (YXS) $18
Quebec City, Que. (YQB) $25
Regina, Sask. (YQR) $15
Rouyn-Noranda, Que. (YUY) $10
Saint John, N.B. (YSJ) $20
Sarnia, Ont. (YZR) $20
Saskatoon, Sask (YXE) $5 Travel within Saskatchewan
(YXE) $15 Travel outside Saskatchewan
Sault Ste Marie, Ont. (YAM) $15
Smithers, B.C. (YYD) $15
Stephenville, N.L. (YJT) $20
St. John's, N.L. (YYT) $15
Sydney, N.S. (YQY) $25
Thompson, Man. (YTH) $15
Timmins, Ont. (YTS) $10
Toronto, Ont. (YYZ) $25 Originating passengers
(YYZ) $8 Connecting passengers
Val d'Or, Que. (YVO) $10
Vancouver, B.C. (YVR) $5 Travel within B.C./Yukon
(YVR) $15 Travel outside B.C./Yukon
Victoria, B.C. (YYJ) $10
Waterloo, Ont. (YKF) $15
Windsor, Ont. (YQG) $10
Winnipeg, Man. (YWG) $20


International Destinations


ATSC: The Canadian Parliament has enacted the Air Travellers Security Charge Act to fund security personnel and security equipment in response to the events of September 11. For international itineraries, the Air Travellers Security charge is 17 CAD for each return or one-way trip with a departure from Canada.


Airport Improvement Fees: Many airports in Canada and around the world have implemented Airport Improvement Fees (AIFs). Some airports collect these fees at the airport at time of departure; others are collected at the time of ticketing and are reflected in the additional charges portion in your fare.


NAV Canada Surcharge: NAV surcharge for International travel to and from select countries is CAD 15 per direction. This surcharge is collected to cover the fees that Air Canada pays to NAV Canada to operate Canada's Air Navigation systems.


Peak Travel Premium: For travel to/from certain international destinations on peak travel dates, a Peak Travel Premium may be added to the 'Taxes, fees, charges and surcharges' component of your fare. The actual premium charged and the applicable peak travel dates are subject to change.

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