Enjoy the government’s new airfare rule. It might not last. On Jan. 26, the Transportation Department began requiring airlines and ticket agents to quote fares that include all mandatory taxes and fees. Since 1988, they’d been allowed to advertise fares that didn’t include government-imposed taxes and fees.
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The Obama administration’s deficit-reduction plan includes a new mandatory $100 surcharge per flight for air traffic control services, which airlines would pay directly to the Federal Aviation Administration. The plan also raises the passenger security tax from $2.50 to $5 per non-stop flight, and eventually to $7.50.
Air travel is one of the most heavily taxed activities in America. You would think it was a “sin” to travel. Heck, it seems to be more of a “sin” than drinking, smoking, shooting or driving.
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Departure taxes are the final “gotcha” when you’re flying. Just as you’re getting ready to board a flight back home someone asks you for money, and threatens to deny you boarding if you can’t cough up the cash.
When asked if Congress should freeze the discriminatory excise taxes imposed by some cities for automobile rentals, 78 percent voted “yes.” Only 21 percent rejected the idea.
This unusually honest press release just arrived in email my in-box. I have seen many such “material impact” statements, but this one is exceptionally blunt. Thrifty announced that they will not have to pay taxes for 2011 and that it expects a refund for some of the taxes it paid in 2010. All this, because of the new tax law that was just passed by our Congress.
TruPrice, the travel technology company that threw you the keys to ancillary airline fees, now drives thousands of car rental fees out into the open.
From the way politicians speak about the transportation federal excise tax, this is a tax paid by the airlines. But reality is quite different. This is a tax completely paid by passengers that is tacked onto the final airfare portion of air transportation. It is in no way paid by the airlines.