In an era where government employees and operations are being analyzed for the efficient operation of public services, it is time to reconsider the taxation policies that unfairly burden these dedicated individuals—particularly when it comes to education, income withholding and travel expenses.

A growing argument is emerging that federal and state government employees should not be charged taxes or fees on income, education, or travel expenses such as flights, and federal employees and  their families should also be exempt from such taxes and charges, including TSA fees and other travel-related costs.  Trump’s rank and file union support is massive with about 60% supporting President Trump in 2024. Accordingly, the White House could really help federal workers, save billions and provide greater benefits with a few simple strategies. [i] [ii]

Furthermore, it is increasingly clear that taxing federal employees’ salaries is inefficient and wasteful. The government could more effectively allocate resources by awarding a tax-free salary, eliminating the need to pay taxes and then collect them, saving both time and money. There should be an opportunity for all federal employees to be exempt from filing annual taxes if they chose the tax free salary and benefits.  This could save the USA taxpayers billions per year.

A Burden on Public Servants

Federal and state employees serve our nation in many essential roles, from law enforcement officers and firefighters to teachers, healthcare workers, and military personnel. However, many of these public servants must travel for work, whether it’s for conferences, training, or official government duties that require them to leave their homes for extended periods.

Unfortunately, the current tax structure adds a layer of financial burden by taxing flight tickets and travel-related expenses. The average domestic flight ticket taxes are about 29.8% on average and up to over 40% taxes on just one airline ticket. [iii]

These flight taxes and fees include:

• Federal Excise Tax: A 7.5% tax on the base fare.
• Flight Segment Tax: A fixed fee of $4.20 per segment.
• Passenger Facility Charge (PFC): Up to $4.50 per segment, capped at $18.
• September 11th Security Fee: $5.60 per one-way trip.

Under the current system, federal employees and their families who are required to fly for their work obligations are still subjected to massive taxes, including federal excise tax, TSA security fees, and other flight-related charges. This adds unnecessary financial stress on the government and  workers who are already contributing to public services and paying for the ticket.

Furthermore, government employees are often required to cover these taxes out-of-pocket upfront for their entire families, only to later seek assistance or reimbursement from their agencies—a process that can be cumbersome and inefficient.  If a struggling military family needs to move to another city as part of a federal job, it is simply wrong and unethical for that family to be charged 30-40% taxes on flights or travel related costs. In essence, a federal employee acting with federal space when they check into a flight with security and TSA.

Why Should Government Employees Be Exempt?

Government employees, both at the federal and state level, already perform duties that benefit society as a whole. They are tasked with maintaining the infrastructure of government, ensuring public safety, educating future generations, and managing resources for citizens' well-being. It is only logical that, when fulfilling their duties, they should not have to bear the added financial strain of taxes and fees on the necessary means of transportation—especially when these trips are family or work-related or even a funeral.

Families should not be penalized with taxes or fees for accompanying a loved one on a government-funded trip or for the death of a loved one. These additional charges are a financial strain that affects their well-being, especially when they have little control over the necessity of such travel.

The Waste of Government Time and Money – Tax Free Salary ?

One of the most glaring inefficiencies of the current system is the way taxes are levied on salaries and expenses. Federal employees are paid their salaries, and then, taxes are taken out of their paychecks—often leading to complex paperwork and a back-and-forth movement of money. This system is an inefficient use of government resources, both in terms of administrative costs and the time of the employees involved.

Imagine the time and money saved if the government were to award a tax-free salary and benefits to its employees from the outset. Rather than collecting taxes on salaries and then issuing rebates or reimbursements for taxes paid on travel expenses, the government could directly allocate tax-free salaries and eliminate the need for complex tax collection and reimbursement systems.

Families could simply fill out a W-9 and declare dependents, standard deductions, and mortgage expenses at the end of the year. This would reduce administrative burdens for government agencies, allow for more efficient use of public funds, and free up valuable employee time, all while providing tax relief to public servants.

The Need for Tax Relief

It is time for lawmakers to consider eliminating flight-related taxes and fees for government employees and their families. This should include:

1. Exemption from TSA Fees and Other Travel-Related Charges: As government employees are traveling for the benefit of the public, they should not have to pay these fees that burden their finances. TSA fees, security charges, and similar levies should be waived for these individuals.
2. No Taxes on Government-Paid Flights: Any flight purchased by or reimbursed by the government for official duties should be free from any form of taxation. The government is already providing the TSA protection and covering the cost of the ticket for the employee’s job responsibilities, and additional taxes are an unfair financial burden on the families and the taxpayers.
3. SALT Tax Deduction or Direct Expense: If any local, city, state or federal taxes on flight-related expenses must still be paid by civilian or federal employee, these should be recognized as a State and Local Tax (SALT) deduction or reimbursed directly. This way, the burden of paying these taxes is alleviated for the employee, who should not be required to cover such costs out of pocket, especially when travel is mandated for the purpose of public service.
4. Tax-Free Salaries: Awarding a tax-free salary to government employees, rather than taxing their income and reimbursing their travel expenses later, would eliminate an inefficient and costly process. This change would save time, reduce IRS staff size, reduce administrative costs, allow families to have tax free income, and free up resources for more productive purposes.

Free College for Federal Employees and Union Workers ?

As for education, Trump can make the unions happy overnight. Federal employees and their children should have access to a free online college education, exempt from both tuition and taxes. The current system is untenable, as prestigious institutions in cities like Boston and New York charge taxpayers up to $85,000 to $120,000 annually in tuition per year.

The federal government is not only paying these inflated rates but also covering the embedded local, city and state taxes to the schools. This is unreasonable and potentially corrupt, especially since the federal government, as a sovereign entity, should be exempt from state, local, and city taxes on federal property.

The U.S. government can purchase an entire college or university that is publicly traded for under $200 million, which is a fraction of the cost of expensive defense projects like the Lockheed Martin F-35 Lightning II, which costs about $109 million per plane.

For example, accredited online universities like Aspen University and United States University—both of which offer training in hundreds of occupations—could be acquired for the same cost as just 2 fighter jets. Under 26 U.S. Code § 114, federal property is exempt from local and state taxation, and the Supremacy Clause of the U.S. Constitution (Article VI, Clause 2) ensures that federal laws supersede state and local laws, reinforcing that the government should not be subjected to unnecessary costs or taxes in areas such as travel or education.

At $400,000 per student for a college degree, the federal government could buy several colleges outright for what the government spends to educate about 500 students at a mainstream brand name college.  Further, the federal government owns various universities already such as WestPoint, Air Force Academy and Annapolis so this is not a breach of any protocol.

Conclusion

It is time for tax policies to identify the waste and inefficiency  our public payment systems. By eliminating taxes and fees on education, salaries and flights for federal and even state employees, and providing tax benefits and relief through expanding SALT deductions, we can better support those who work tirelessly to serve our communities particularly for peace officers, grieving families, and military families.

Furthermore, by awarding tax-free salaries to federal employees, we would eliminate a wasteful system that consumes government time and resources. This change would create a more efficient and streamlined process that benefits both the public servant and the taxpayer. While President Trump already has majority support from union workers, he should work directly with the American Federation of Government Employees which is affiliated with the AFL-CIO to expand and innovate benefits for federal workers and members of the federal unions. [iv]

Let us stand together to ensure that no peace officers, military, or public servants are unfairly taxed for doing the work that benefits us all, and let us support a system that is more efficient and fair for those who dedicate their lives to public service. The true irony to these simple suggestions herein is that we could boost benefits for millions of workers, and this strategy could  save taxpayers hundreds of billions per year.

References

1. U.S. Internal Revenue Service (IRS). "Federal Excise Tax on Air Transportation." IRS.gov.
2. U.S. Department of Transportation. "TSA Passenger Security Fees." transportation.gov.
3. National Taxpayers Union. "Why Public Sector Workers Deserve Tax Relief on Work-Related Travel." ntu.org.
4. U.S. General Services Administration (GSA). "Travel Policy for Federal Employees." gsa.gov.
5. U.S. Government Accountability Office (GAO). "Federal Travel: Agency Travel Management Programs." gao.gov.
6. Tax Foundation. "Tax Treatment of Business and Government Travel Expenses." taxfoundation.org.
7. National Public Radio (NPR). "TSA Fees and Their Impact on Air Travel." npr.org.
8. Government Accountability Office (GAO). "Travel Expenses of Federal Employees." gao.gov.
9. Congressional Research Service. "Tax Deductions for Government Employees." crsreports.congress.gov.
10. Public Employees Federation. "Tax Relief for Government Employees: A Fair Policy." pef.org.

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Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award-winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.Mentzenborg is just a term of art to describe the theory and process by George Mentz JD MBA ChE. CWM is for Chartered Wealth Manager ® and ChE Chartered Economist ® is a credential for economics professionals.