Tuesday, July 26, 2011

Where is my refund?

From CNN online:

Airlines benefiting from a unplanned federal tax holiday should save the money for the government or pass it along to the passengers, but should not pocket the money themselves, key congressional leaders said Tuesday.

Two Democratic lawmakers said the airlines' actions belied the industry's frequent lament that government taxes and fees hurt air travel.

"As we have heard from airlines for many years, these fees, all of which are passed on to the consumer, depress the demand for air travel, hurting the industry's bottom line. We are left to conclude that your previous assertions were incorrect about the impact of taxes and fees on the industry," Sens. John D. Rockefeller IV, D-West Virginia; and Maria Cantwell, D-Washington, wrote in a letter to Delta Air Lines CEO Richard Anderson, chairman of the board of the Air Transport Association, an industry group.
Rockefeller and Cantwell urged the airlines to "put all of the profits that they are making" from the tax lapse into an escrow account so they can transfer it to the Airport and Airway Trust Fund (AATF) when Congress reinstates the taxes.

"If the industry is unwilling to protect the integrity of the AATF, at a minimum, it should pass the savings onto the consumers," the senators said.


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