Besides, an elementary understanding of tax incidence theory suggests that people are paying roughly

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Mica doesn t propose to gut much from the program, just to end subsidies that amount to more than $1000 per ticket . Which doesn t amount to much, certainly not real reform. But it just so happens to affect only 3 small airports which are represented by three powerful Democrats . (Wouldn t want to cut subsidies for Republicans, after all!)
As I say, it s a bit of a canard since the House really isn t even reforming the Essential Air Service program. louisiana tour guide services They re just paring back the subsidies from three political enemies. (First rule: always remember that all politics is fake .)
Republicans also want to overturn a National Mediation Board decision which lowers the bar for unionizing airlines. Previously, a union had to obtain a majority of employees to unionize, the recent changes louisiana tour guide services is that they only have to get a majority of those employees actually casting a ballot to vote in favor of a union. Republicans would like to reverse that change, and President Obama has threated a veto over it.
Meanwhile, several Senators was additional slots beyond the currently 1250 mile perimeter at Washington National airport. The current law is antiquated, originally intended to support long-haul traffic at Dulles it had the opposite effect, delaying the development of Dulles as a hub for a decade. (With more short-haul louisiana tour guide services traffic shifted to National airport, there wasn t nearly as much feeder traffic for Dulles longer louisiana tour guide services flights, which meant that the airport could support only those flights necessary to carry DC-origination/destination traffic.)
Subsequently a series of exceptions have been made. John McCain, who represented the home state of then-America West airlines, was the chief proponent of flights beyond louisiana tour guide services the perimeter (and in particular, those flights being awarded to America West).
No one proposes to eliminate the perimeter , incumbent carriers with exempted slots find those valuable and benefit from the legal monopoly louisiana tour guide services they receive, competitors are not permitted to enter the market. And politicians benefit from handing out exemptions to constituents and contributors. So it isn t just a matter of how many more slots are permitted to fly beyond 1,250 miles it s a fight over which Senators gets to hand them out to their favored airlines. The Senators hold the legislation hostage, demanding to be bought off.
Rick Seaney echoes the Secretary of Transportation in saying that failing to re-authorize the FAA means they aren t permitted louisiana tour guide services to collect taxes on airline tickets . He says that passengers could begin saving 15% or more on their tickets beginning louisiana tour guide services early in the morning on Saturday, and that passengers with existing tickets traveling louisiana tour guide services before the FAA can again collect these taxes should louisiana tour guide services be entitled to a refund.
Seaney acknowledges that under similar circumstances in the past, Courts have ruled that airlines didn t have to return the overpaid taxes. And who is going to go through the hassle louisiana tour guide services of trying to get the money back from the government? (Not to mention, my own feeling is it s always a good idea to attract as little government attention as possible when it comes to taxes!)
My own guess is that no one will stop collecting ticket taxes at midnight. I ve reached out to press people at Expedia, Orbitz, Travelocity, and United Airlines but it s Friday afternoon in summer not surprised I haven t heard back. Still, this would take programming changes to implement and I doubt anyone has been proactively working to remove taxes from airfares, especially since no one expects such a thing to be long-lasting. Besides, louisiana tour guide services assuming that the airlines don t stop collecting taxes, it ll be relatively louisiana tour guide services simple for a legislative fix to simply retroactively authorize the taxes. And the authorization issue would seem to apply to when travel is consumed, rather than purchased, so how will United or Expedia know which tickets to collect the taxes on and which not to? If they stopped collecting taxes, they might be facing either louisiana tour guide services (1) eating the cost of the taxes themselves or (2) passing on an add-collect to the passenger.
Either Congress will mandate that they remit the taxes paid during the period where FAA was without louisiana tour guide services re-authorization or extension, louisiana tour guide services or the agencies or travel providers will get to keep the taxes. Either louisiana tour guide services way, they re likely to want to continue collecting the taxes. And doing so should be cost free, at least to the extent that Seaney s understanding louisiana tour guide services of how courts have treated this issue in the past is correct.
Besides, an elementary understanding of tax incidence theory suggests that people are paying roughly what they re willing louisiana tour guide services to pay in airfare now. One would expect prices to rise much of the way to compensate for removal of taxes. Contra Rick Seaney, I would expect any savings were taxes to go uncollected to quickly fall, prices rise, and the difference in price would be far less than his projected 13%.
Update: Looks like at least some systems louisiana tour guide services are being prepared not to charge louisiana tour guide services taxes. And of course new fares aren t filed in real-time, so even if airfares do adjust that will happen over the coming airfare feeds, louisiana tour guide services so no doubt there will be an opportunity to book tickets with those systems and carriers not charging tax and at prevailing airfares (ie without a corresponding airfare increase). Developing..
Update 2: Travelocity responds. According to Joel Frey, Travelocity spokesperson, No, we will not display louisiana tour guide services or include the government fees and taxes in the price of airfares if the bill expires at 12:01. Sweeeeet!
This deal ended long ago for us, when Bank of America stole $xxx.75 louisiana tour guide services out of a $x,000 deposit of $1 coins. After two years, they finally settled our court case for the stolen amount plus out of pocket costs.
Nitpicking, but since we re talking about Jim Wright and perimeter rules, I ll point out that the 1,250 allowed flights to Ft Worth (DFW). Dallas (DAL) had its own Wright-imposed limits that prohibited service from WAS.
@Swag, it s not nitpicking, the only thing the two rules have in common is that they both protect American Airlines and Wright represented the Fort Worth area. He limited Southwest s competition to American at Love Field, and ensured American could fly to their Dallas Forth Worth hub from Natioanl Airport. Entirely consistent.
The FAA does a lot more than ATC. They maintain (some) runways, ATC facilities, tons of navigation equipment (VORs mostly these days), they design and monify IFR procedures, they write vitally important procedures, the flight test IFR routes, do I need to go on?
Just as towers aren t the most important buildings in ATC (as most people believe), ATC is not the most important thing the FAA provides. You can do without ATC (and hundreds of flights every day do), but you cannot do without runways or navigation aids.
Also, the passenger facility fees and 9/11 tax are still in, apparently. Airtran is showing 0 for excise taxes. Virgin tweeted they ll start not collecting at midnight pacific (not sure how they get to decide this).
[...] it is of interest to those contemplating MR s at the moment. Per the information presented on Gary s blog, it seems that UA is not collecting the 7.5% tax right now. My verification was as follows: louisiana tour guide services 1. [...]
[...] should be $75 after full taxes Now it s a $68 fare and comes out to $75 after partial taxes Gary Leff predicted this, but I still find it quite distressing that Southwest took the low road. I doubt the old Southwest [...]
Congratulations to all of them for not raising louisiana tour guide services prices to cover the lapsed tax. Their competitors are too clever by half. I knew JetBlue would get this right: their marketing people are the very best.
[...] How very legacy of them, including, stunningly louisiana tour guide services to me, Southwest Airlines. I just posted this on View from the Wing: The airlines who have seen a golden opportunity for great free advertising by the mass media at [...]
@nsx Alaska really didn t have any choice, since they have a fare guarantee program in place. If they had raised fares temporarily (ala WN), they d have to lower them again when the taxes get reauthorized. That would create an opportunity for credits to be issued to their MyWallet program for the lowered base fares. Net net net, they d probably be better off following WN s model, since not all pax would claim them.
[...] I haven t been following the bruhaha in Capitol Hill over the budget, but I did read an interesting blog post from Gary at View from the Wing about the the possibility of less taxes being collected on airline [...]
I just found a fare BUF/ORD RT on United that priced louisiana tour guide services @ 207. I called to book it (using some vouchers)and the fare suddenly was $217. I double checked on united.com and sure enough the fare was up $10 to $217. Looks like United either raised their fare or is charging the tax again ..
[...] Recent CommentsJames on The End of Buying $1 Coins from the Mint to Earn MilesJohnnieD on Is There a Once-in-a-Lifetime Opportunity to Buy Airline Tickets louisiana tour guide services Tax Free?Reduced Taxes on Airline Tickets | The Points Guy on Is There a Once-in-a-Lifetime Opportunity to [...]
[...] View from the Wing posted an incredibly detailed explanation on an extention for airline louisiana tour guide services taxes that expired last night at midnight. Due to this, it seems as though right now you can purchase some tickets without having to pay all of the taxes, resulting in a fare reduction of about $20-$30. louisiana tour guide services [...]
Unless you caught louisiana tour guide services the actual fare construction from both quotes and compared it s really hard to form any conclusion from a change like this. Fares and fare availability are updated continuously throughout the day.
American Airlines is a company treats numerous employees just as rotten as it does its customers dece