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Schumer has it wrong. Carry-on bag taxes are paid for by passengers not airlines.

Posted by Charlie Leocha on April 18, 2010 at 6:15pm
The misdirected attempt to declare carry-on baggage "essential" so that it would be subject to the transportation excise tax won't affect airlines at all. It will on add a 7.5% tax on top of the baggage fees that is paid by passengers.Should Schumer and his cosponsors prevail (I doubt that they will), the cost of any carry-on bag will go up by 7.5 percent. The excise tax is a separate tax on top of other taxes and exclusively paid for by passengers, not the airlines.http://www.consumertraveler.com/today/schumer-has-it-wrong-exempting-baggage-charges-from-excise-tax-benefits-passengers/I wrote about this in early February after the IRS ruling come out. These posts clearly analyze the IRS ruling and explain why the analyst made these decisions.http://www.consumertraveler.com/today/american-airlines-list-of-unbundled-services/http://www.consumertraveler.com/today/irs-airline-baggage-fees-not-taxable-as-transportation-security-fees-are-taxable/Passengers need transparency and truth in pricing, rather than micro-management by Congress.Check out the Consumer Travel Alliance. If you like it support it on your blogs.
Tags: IRS, airlines, baggage, fees, travel
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