July 23, 2011 |
Finally, good news from the gridlock in Congress. Or maybe not. The federal government Saturday stopped collecting taxes on airline tickets, so flying suddenly got cheaper, right? Wrong. Many airlines just increased their airfares to match the tax drop. At stake can be about $30 on a $300 ticket, the Associated Press says. What happened is that squabbling lawmakers failed to extend laws that authorize the government to collect the airline ticket tax and other aviation-related taxes.
February 14, 2007 |
The Bush administration's long-awaited plan to pay for a new, high-tech air traffic control system would eliminate the passenger ticket tax but raise other costs for people who fly. The Federal Aviation Administration will unveil its proposal today. The announcement is expected to touch off a fierce debate between airlines, which support the concept, and owners of corporate jets and private aircraft, who will pay more to fly in the national air space.
January 6, 2002 |
Have you looked at the corner of an airline ticket recently, where the fare, fees and taxes appear to be listed? I have, and most of it was indecipherable to me. One thing I do know: A new fee soon will appear, a "security service fee" of up to $10 per round trip. Congress authorized it in November to pay for aviation security improvements in the aftermath of the Sept. 11 attacks, and it is expected to begin next month.
July 12, 1997 |
The nation's airlines have become embroiled in a nasty dogfight over Congress' efforts to extend the 10% airline ticket tax, with ordinary passengers likely to be caught in the cross-fire. The skirmish, which involves sharply differing House and Senate proposals to extend the tax, has the nation's seven largest airlines pitted against discount fliers such as Texas-based Southwest Airlines.
March 8, 1997 |
As the federal 10% tax on airline tickets was reimposed Friday, airlines were adjusting fares frequently, and it was unclear whether travelers would have to pay more to fly. Airline spokesmen said that fares were in constant flux and that it would probably be early next week before they stabilized. Several major airlines, including American and United, at first added the tax onto current fares, raising ticket prices 10%.
March 2, 1997 |
President Clinton signed legislation reinstating a 10% tax on airline tickets for domestic flights. The aviation tax, extended to Sept. 30, also imposes a $6 per-ticket fee on international flights. The tax becomes effective in six days. The ticket tax expired Dec. 31. Its revenues go to the airport and airways trust fund, which is used to pay for improvements to airports and the air traffic control system.