Bill Overview
Title: SPACE Tax Act
Description: This bill imposes excise taxes on (1) the taxable space transportation of a passenger other than crew or a government astronaut, and (2) each taxable space launch of a space vehicle (i.e., any launch vehicle and any reentry vehicle).
Sponsors: Rep. Blumenauer, Earl [D-OR-3]
Target Audience
Population: Individuals involved in commercial space travel
Estimated Size: 5000
- The bill imposes taxes specifically on space transportation for passengers who are not crew or government astronauts.
- This suggests individual tourists or commercial passengers on space flights will be financially impacted.
- The bill also taxes space vehicle launches, affecting companies involved in launching spacecraft for commercial purposes.
- Space tourism is a nascent but growing industry worldwide, with several private companies involved.
- The broader space industry includes many countries and commercial entities.
Reasoning
- The target audience for this policy is relatively small and limited to those involved in space tourism activities, either as consumers or providers.
- The economic impact will likely be more noticeable in the short to medium term due to the increased costs for space tourism businesses and their clients, specifically wealthy individuals who can afford these experiences.
- Most general public individuals will remain unaffected directly by this policy since it targets a niche market.
- Some indirect impacts might occur if the policy affects broader technological advancements or investment flows in the space economy.
- Given the niche industry and highly specialized audience, the impact of the policy might not resonate widely across different socio-economic strata in the general population.
Simulated Interviews
Tech Entrepreneur (Seattle, WA)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I think the policy might slow down some of the investment flow into space tourism, but overall, it's a necessary step to ensure a sustainable approach to space travel.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 10 |
| Year 20 | 9 | 10 |
Space Tourism Sales Executive (Los Angeles, CA)
Age: 35 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 3.0 years
Commonness: 2/20
Statement of Opinion:
- The tax will increase our costs and may reduce customer interest in the short term, potentially affecting my job if sales decline.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 9 |
| Year 2 | 7 | 9 |
| Year 3 | 7 | 10 |
| Year 5 | 8 | 10 |
| Year 10 | 9 | 10 |
| Year 20 | 9 | 10 |
Software Developer (San Francisco, CA)
Age: 28 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- While it makes my dream of going to space a bit more expensive, I'm also concerned about the environmental impacts of space flights, so it's a mixed feeling.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 10 |
Aerospace Engineer (Houston, TX)
Age: 47 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I support taxes that could help address carbon emissions. This policy specifically targets a booming yet potentially risky new frontier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Investment Banker (New York, NY)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- Investment decisions may hesitate due to potential increased costs from the tax, affecting returns.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Travel Agent (Las Vegas, NV)
Age: 42 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- Space travel is already an elite luxury; the extra cost of taxes might deter some clients but the major enthusiasts will likely proceed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 9 | 10 |
| Year 10 | 9 | 10 |
| Year 20 | 10 | 10 |
Space Enthusiast Blogger (Miami, FL)
Age: 29 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- Disappointed as this could delay or deny my dream trip, but I acknowledge the importance of accounting for environmental impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 10 |
University Professor (Boston, MA)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Supportive, as taxing space tourism for its emissions fits well into the larger picture of responsible space exploration.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Environmental Lawyer (Austin, TX)
Age: 40 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This policy is a step in the right direction to curb emissions from growing industries like space tourism.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
College Student (Chicago, IL)
Age: 23 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- Might make getting a job in the industry post-graduation slightly more challenging if fewer companies are profitable due to the tax.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $100000000 (Low: $75000000, High: $125000000)
Year 2: $115000000 (Low: $90000000, High: $140000000)
Year 3: $130000000 (Low: $100000000, High: $160000000)
Year 5: $160000000 (Low: $130000000, High: $190000000)
Year 10: $220000000 (Low: $180000000, High: $260000000)
Year 100: $600000000 (Low: $400000000, High: $800000000)
Key Considerations
- The policy is designed to generate revenue from luxury spending associated with space tourism.
- Impact on future industry growth and potential aversion to investment should be monitored.
- Administrative cost related to the enforcement and collection of the new taxes.
- This policy may set precedence for additional future taxes on novel commercial sectors.