I checked the round-trip fare from SJO to ORD on Continental yesterday and this morning. The base fair of $411 was unchanged. The tax savings only amounted to $32 (down from $508 to $476).
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| Federal tax on airline tickets suspended...for now https://forum.costaricaticas.com/viewtopic.php?f=4&t=38291 |
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| Author: | Puravidatransport [ Sat Jul 23, 2011 11:56 am ] |
| Post subject: | Federal tax on airline tickets suspended...for now |
The great government of the United States couldn't come to an agreement on the FAA budget/operations so they have no authority after midnight which means ALL TAXES they were authorized to collect on airline tickets are SUSPENDED! So until Congress gets their act together, you can buy an airline ticket and pay none of the taxes the FAA normally collects. So hope to see MANY of you use this opportunity and get your ass down here!!!! http://www.foxnews.com/politics/2011/07 ... e-tickets/ |
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| Author: | Icantstayaway [ Sat Jul 23, 2011 12:37 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
I cant believe this is going to work. Since some fares start at $9.00 dollars, this would be a heck of an opportunity. Or are there other taxes and fees besides just the Federal tax ? But then again, when I book a 'Miles award' ticket my tax was only $27.00 -$48.00 or so. ... ??? Hmm. |
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| Author: | Pacifica55 [ Sat Jul 23, 2011 12:42 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
ICSA, that's the fare excluding tax. Grab this deal while you can, folks. |
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| Author: | JazzboCR [ Sat Jul 23, 2011 12:45 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
There isn't necessarily any money gonna be saved by consumers--USAir has already raised prices to where they'd be WITH taxes. Not a saving for us--a windfall for them. There are other legal tax issues as well--a close reading of stories about this is imperative. All in all, it is one big mess and so unnecessary. |
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| Author: | El Tranquilo [ Sat Jul 23, 2011 6:07 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
I checked the round-trip fare from SJO to ORD on Continental yesterday and this morning. The base fair of $411 was unchanged. The tax savings only amounted to $32 (down from $508 to $476).
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| Author: | Kb9ora [ Sun Jul 24, 2011 3:09 am ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
American Airlines is the same way with this by not letting us get any kind of relief. matter of fact they have raised their fares to make up for this loss, along with UsAir doing the same thing. |
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| Author: | Puravidatransport [ Sun Jul 24, 2011 9:35 am ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
Talking to folks in the industry, the airlines have raised prices to compensate for the tax because they are worried when Congress does pass a funding bill for the FAA, it may include a provision where the airlines have to pay the taxes on those tickets anyway. IRS has yet to give an opinion.... |
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| Author: | LovesLife [ Sun Jul 24, 2011 11:11 am ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
3 cheers for Spirit Air --- they're NOT raising rates. I just booked my first trip, $30 cheaper than Friday 
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| Author: | Rascal [ Sun Jul 24, 2011 1:00 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
Puravidatransport wrote: The great government of the United States couldn't come to an agreement on the FAA budget/operations so they have no authority after midnight which means ALL TAXES they were authorized to collect on airline tickets are SUSPENDED! So until Congress gets their act together, you can buy an airline ticket and pay none of the taxes the FAA normally collects. So hope to see MANY of you use this opportunity and get your ass down here!!!! http://www.foxnews.com/politics/2011/07 ... e-tickets/ http://finance.yahoo.com/news/Airlines- ... 6.html?x=0 DALLAS (AP) -- Airlines are tossing consumers aside and grabbing the benefit of lower federal taxes on travel tickets. By Saturday night, nearly all the major U.S. airlines had raised fares to offset taxes that expired the night before. That means instead of passing along the savings, the airlines are pocketing the money while customers pay the same amount as before. American, United, Continental, Delta, US Airways, Southwest, AirTran and JetBlue all raised fares, although details sometimes differed. Most of the increases were around 7.5 percent. |
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| Author: | JazzboCR [ Sun Jul 24, 2011 1:18 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
Rascal wrote: Puravidatransport wrote: The great government of the United States couldn't come to an agreement on the FAA budget/operations so they have no authority after midnight which means ALL TAXES they were authorized to collect on airline tickets are SUSPENDED! So until Congress gets their act together, you can buy an airline ticket and pay none of the taxes the FAA normally collects. So hope to see MANY of you use this opportunity and get your ass down here!!!! http://www.foxnews.com/politics/2011/07 ... e-tickets/ http://finance.yahoo.com/news/Airlines- ... 6.html?x=0 DALLAS (AP) -- Airlines are tossing consumers aside and grabbing the benefit of lower federal taxes on travel tickets. By Saturday night, nearly all the major U.S. airlines had raised fares to offset taxes that expired the night before. That means instead of passing along the savings, the airlines are pocketing the money while customers pay the same amount as before. American, United, Continental, Delta, US Airways, Southwest, AirTran and JetBlue all raised fares, although details sometimes differed. Most of the increases were around 7.5 percent. Tell me that anyone was surprised by this anti-consumer cash-grab. |
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| Author: | PlaneCrazy [ Mon Jul 25, 2011 12:15 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
There's usually a lot more hidden fees in a ticket purchase then just the federal tax. Things like a fuel surcharge, airport fees, security fee's etc. And the airlines are definitely thinking that the government will go after them for back tax once they get their shit together - thus the increase in their fares while this issue remains unresolved. But the press just loves painting them as money grabbing opportunists, so they spin their own view on the news. Typical. It's weird though how the prices are fluctuating all across the industry lately. I work for an airline and although I didn't want to risk being late on my arrival in CR next month and thus paid for a full fair ticket down on Air Canada, I will be coming home on an interline ticket, which is a special fare reserved for employees of other airlines. That ticket only cost me $71 It's about half what it was 6 months ago.
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| Author: | LAdiablo [ Thu Jul 28, 2011 8:16 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
IRS Asks Airlines to Refund Tickets Tax bloomberg Lisa Caruso, On Wednesday July 27, 2011, 12:29 pm EDT Air passengers who bought plane tickets before the airlines had to stop collecting U.S. ticket taxes, for travel on or after July 23, may be entitled to a refund of tax paid. The Internal Revenue Service, in a notice posted today on its website, said it has asked the airlines to repay eligible customers who request refunds. Those who don’t receive one from the airlines can submit claims to the IRS under procedures being developed, according to the statement. The airlines suspended collection of the taxes when the Federal Aviation Administration’s taxing authority expired at midnight July 22, after Congress failed to extend the agency’s funding. “We agree that passengers are entitled to a refund based on precedent and case law from previous tax lapses,†Steve Lott, a spokesman for the Air Transport Association, the airlines’ Washington-based trade association. “But we are puzzled by the IRS guidance on how to most efficiently get the refund. We believe it’s the IRS’s responsibility because ultimately it’s the Treasury that has the tax money, not the airlines,†Lott said in a phone interview. IRS spokesman Anthony Burke didn’t immediately provide comment on the notice. United, JetBlue, Southwest United Continental Holdings Inc. (UAL), the world’s largest carrier, is referring customers who call or write seeking a tax refund to the IRS so the agency can handle the matter, said Mike Trevino, a spokesman for the Chicago-based carrier. He didn’t know how many passengers have requested a tax refund. “At this point, we are recommending passengers contact the IRS for a refund, since the tax funds are allocated to the IRS at the time of purchase, not travel,†said Brandy King, a spokeswoman for Dallas-based Southwest Airlines Co. (LUV) JetBlue Airways Corp. (JBLU) posted a note on its website telling passengers it would provide refunds upon e-mail request for people traveling within the next seven days. It advised customers to check back later if they are traveling after the seven-day period. |
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| Author: | JazzboCR [ Thu Jul 28, 2011 11:20 pm ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
This illustrates why regulatory,, especially voluntary, ex post facto relief is such a failure. Consider: manufacturors offer rebates instead of price cuts because they know from research that only a small, predictable % of buyers will seek the rebate, but 100% of buyers would get an equal price cut. Exact same situation here--how many customers will seek this refund? I'd guess high-side to be <20%...And the balance would be free money for whoever grabbed it first--IRS, the airlines, Kayak--who knows? <signed> Cynical PS--Injunctive relief can work--this kind doesn't. |
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| Author: | LAdiablo [ Fri Jul 29, 2011 1:17 am ] |
| Post subject: | Re: Federal tax on airline tickets suspended...for now |
they just voted out red light camera tickets in los angeles. one councilman who i know personally said publicly not to pay them and another said you should because you broke the law. the average fine for encroaching over the line? $480. orwell would be proud. |
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