Monday, April 9, 2012

TAXES, TAXES AND MORE TAXES ON AIRFARES


As a passenger are you aware of how much of your airfare is taxes? Currently the aviation industry and passengers pay 17 different federal taxes and fees. It’s a hornet nest of fees that defy rationale and have no consideration for the impact on travelers and the relative expense of a ticket. In 1972 there were only 5 taxes on an airline ticket and today we have 17! How much do those taxes raise the cost of your ticket? Those taxes add 20 percent or more to the total cost of a ticket. You can visit http://www.airlines.org/Pages/Government-Imposed-Taxes-on-Air-Transportation.aspx to see all the taxes and a comparison from 1972 to now. Here are a few examples: Flight Segment Tax (domestic) - $3.80 every time you land, Frequent Flyer Tax 7.50%, Cargo Waybill Tax (domestic) – 6.25%, September 11th Fee $2.50, International Departure Tax $16.50 and they get you for the same amount arriving! Check it out, the fees are out of control. There is even a “LUST fuel Tax (domestic)” now what is that about since they have at least 4 other fees I can attach to fuel.

At first I thought it was the airlines being greedy, but this is our government doing this for the most part. It seems more taxes are being proposed by this current administration. They propose increasing the passenger security, currently $5 to $10 per flight, and hiking it up to $15 and maybe even higher in the future. From the $24.9 billion the fee would bring in over the next 10 years, $15 billion of it would go to pay reducing the national debt. It doesn’t seem right to me that paying off the national debt should fall on the wallets of the population that flies. Not everyone who takes a flight is flush with money. I fly every month and often several times a month for work and I meet people who are headed back home because a family member has died or is ill, retirees living on fixed incomes trying to check off a few must-do sights from their bucket list, young families wanting their children to see their grandparents, and yes, business travelers, but the Donald Trumps and Oprah Winfrey’s who can afford the taxes are flying in their private jets for the most part.

Most of us never look at or ask about the tax side of our ticket, but recently the Transportation Department required all airlines and travel agents quote the fare with full disclosure of the taxes and fees. Airlines don’t like this because it makes their fares look 20 to 50 percent higher than before. I actually don’t think the airlines care about these taxes coming out of our pocket, I think they only protest because with the new full disclosure before you hit the buy button on that flight is influencing travelers to Skype that meeting, drive to their next vacation or look at alternatives like the train or bus.

While the tax gauge is the government sticking it to us all those added luggage fees, charges for seat selection, food, blankets, pillows, wifi and wasn’t it Spirit that said they were going to charge to use the toilet and got such a backlash that they put it on hold for now?  While the taxes have increase the fees for add-ons (most of which used to be included as part of your airfare) have multiplied at a far more alarming rate.

Do you think you are paying too much in taxes on airline tickets? Do you think airline tickets should be all-inclusive as they once were or do you like the ala cart fee structure?

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