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.
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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.
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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.
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Anyone who has traveled recently knows the bane of travelers, taxes; lots of taxes. Taxes on your air transportation. Taxes on hotels. Taxes on rental cars. It’s enough to make travelers want to throw tea overboard.
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One of the central struggles in the Senate/House conference committee negotiations on the FAA Reauthorization bill is clarity and transparency of airfares. In the European Union, the same transparency of airfares and fees is already mandatory. It is time that airline passengers get the same total price information here as home that European lawmakers require from our airlines overseas.
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A few business magazines and some blogs have commented on this “non-taxable” ruling. But upon further examination, baggage fees are taxable, just not as transportation. It appears that taxes are eventually collected from the airlines for these fees as overall corporate profits and passengers may actually benefit from not having 7.5 percent transportation federal excise tax slapped on the baggage fees.
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JAL joins Skyteam, Boeing considers 737 redesign and new engines, IRS says airline fees aren’t taxable
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Ever wished there was a law that forces airlines to disclose all extras on their tickets? Right up front. While you’re shopping for flights.
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I am Patient Zero for attention deficit disorder, which may explain why more than a few people with legitimate grievances e-mail me back after I’ve responded to their questions, asking me if I even bothered to read their inquiry. I did, but I was probably distracted by a screaming child in my home office or a kitten scurrying across my keyboard.
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If your travel plans include France, some meals will cost less beginning in July because of tax cuts. Will it be enough to lure residents and tourists into eating out? The French government is betting yes. Do you think US restaurants should do more cost cutting in order to increase business? Times are tight.
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