The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Airlines Take the (Tax) Money and Run

Aug 1, 2011

Congress recently failed to approve a budget for the FAA (Federal Aviation Administration) causing a halt in the collection of some taxes on airfares. According to the industry, the price of an average airline ticket had been about $300, with $239 of this going to the airline, and $61 going in taxes to the FAA.

But when the collection of the $61 in taxes was halted on July 1, the ticket price did not go down to $239. Instead the airlines simply kept all the money that had been going to the government in taxes, pocketing 25 million to 30 million dollars more per day!

There’s more than one way to skin consumers – that’s the airlines motto!