Airlines Gain Ally in Bid to Shield Fees From U.S. Taxes

Discussion in 'General Discussion | Travel' started by Newscience, Jan 5, 2014.  |  Print Topic

  1. Newscience

    Newscience Gold Member

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    Newscience, Jan 5, 2014
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  2. LETTERBOY
    Original Member

    LETTERBOY Gold Member

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    If they tax fees, the airlines will just raise the fees to compensate.
     
    LETTERBOY, Jan 5, 2014
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  3. MX

    MX Gold Member

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    It doesn't work like this. The airlines will raise fees regardless, if that will increase their profit. But different tax treatment of ancillary fees vs. other price components will simply act as a tax subsidy for "creative pricing".
     
    MX, Jan 6, 2014
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