Airlines claim passengers are overtaxed — but what's their motivation?

Discussion in 'General Discussion | Travel' started by rwoman, May 6, 2012.  |  Print Topic

  1. rwoman
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    rwoman Gold Member

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    Airlines claim passengers are overtaxed — but what's their motivation?
    Taxes, taxes, fees, taxes, more fees...

    :eek:

     
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  2. General_Flyer
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    General_Flyer Gold Member

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  3. gleff
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    gleff Co-founder

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    As we saw when aviation tax authorization lapsed, it's actually the airlines and not the passengers that are paying the 7.5% excise tax on domestic tickets. (The price of tickets within hours wound up being the same to consumers regardless of the tax -- so when the price to consumers is the same, the government taking a piece suggests it's the airlines that bear the cost of the tax.)

    So claiming passengers are overtaxed is actually saying the airlines are overtaxed.

    I'm actually sympathetic, the three most heavily taxed industries I can think of are alcohol, cigarettes, and travel.

    Of course airlines have to pay income taxes like any other corporation, the 7.5% excise tax on domestic tickets is taken of the top on revenue whether they make or lose money and is in addition. And then there are airport fees and 'security' taxes, plus airlines are paying huge taxes on their fuel....
     

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