Airline Tax Holiday:Get Your Tickets Now and Demand the Savings Pass Through
July 25, 2011 - 9:54 am
The Wall Street Journal notes that Congress has allowed the airline ticket tax to expire. Buy your tickets now and demand the airline pass through the savings to you:
There’s a tax holiday right now on airline tickets. Who gets the benefit, airlines or the passengers? With only a few notable exceptions, airlines are pocketing the temporary windfall instead of passing the savings on to the people who actually pay the taxes.
A dysfunctional Congress let funding expire for Federal Aviation Administration on Friday, forcing the agency to lay off thousands of employees and shut down airport construction projects. Air traffic controllers are still on the job -– they are classified as essential and still get paid.
But another consequence of the budget mess is that the FAA can’t collect taxes on airline tickets and had to roll back taxes on jet fuel. And so similar to back-to-school tax-free weekends that states run, travelers should be getting a tax-free ticket-buying period.