13 Responses

  1. Mike Reed
    Mike Reed at |

    It’s amazing – the legislation passed, the opposition lost the vote. Rather than move on, they introduce reverse legislation? Incredible…

  2. Joseph M
    Joseph M at |

    Congress is definitely leading the charge to the bottom….

  3. ari
    ari at |

    What about alcohol, cigarettes, and gasoline?

  4. Voice of reason
    Voice of reason at |

    Hopefully the DOT will have enough sense and backbone to ignore this kind of deranged baying from the Teabaggers in Congress.

  5. vivek
    vivek at |

    Let me guess – a tea partier who is anti taxation??

  6. HansGolden
    HansGolden at |

    I’m a Tea Partier against more taxes, but this is a moronic way to go about tax awareness as most of the “taxes” in airfares AREN’T TAXES!

    Most things are listed without the taxes (not sure on federal/state/local distinction) in B&M stores like Walmart, et. al. but the key distinction is that it’s a fixed % sales tax that’s not included. Thus, it’s insanely simple to estimate what they’ll be–it becomes second nature. What should be disclosed is when there are fixed $ fees ($2.50/segment) and fixed $ YQs which are not proportionally connected to the base fare.

  7. Sean
    Sean at |

    Do airlines have to pay the 7.5% Federal Excise tax on fuel surcharges or just the airfare component? Is this why we’re seeing ridiculously low fares as above coupled with relatively massive fuel surcharges?

  8. AS
    AS at |

    @Sean – I believe they don’t have to pay the 7.5% on Fuel Surcharges, but I could be wrong.

    I believe the Fuel Surcharge doesn’t get reduced on corporate discounts or discount codes, etc. It may not even get counted against annual base fare spend. So this is a sneaky end-run around corporate discount programs, assuming I’m right.

  9. Wandering Aramean
    Wandering Aramean at |

    AFAIK the fuel is taxed but not discounted on corporate contracts. So the feds get their cut but the discounts don’t apply. There was an IRS memo about it a couple years back in response to a request that AA made for clarification on a number of different ancillary fees.

    I’m also not sure that the YQ is pooled in the ATIs, but I don’t know for certain.

    No matter what, the Congressman is still a moron.

  10. Greg Z
    Greg Z at |

    What about sales tax guys, should that be included? Or property tax on real estate, or registration on a car. Why can car dealers advertise cars that will cost more once you add license, taxes, registration, etc???

    I’m no fan of the government, but a company should be able to do what it wants. If you don’t like it, fly someone else. If all-in pricing was so great, one of the carriers would have done it. Many sites (Kayak for instance) already provided the all-in price anyways.

  11. Oliver
    Oliver at |

    “I’m no fan of the government, but a company should be able to do what it wants.”

    Pretty broad statement.