It looks as though congress passed this legislation about a week ago (H.R. 2881 FAA Reauthorization Act of 2007) and Bush has said he will sign it before 1st October deadline. According to a press release from the House Transportation and Infrastructure Committee: The House today approved and sent to the Senate a bill providing a temporary extension of Federal aviation programs through the end of 2007. The current authorization expires on September 30, and some programs would lapse without an extension. The House approved a new, four-year authorization bill on September 20, and a companion bill is pending in the Senate. Todays action would provide the two chambers with additional time to finish work on that legislation. The U.S. based airline ticket taxes are set to expire this Sunday 30th of September. Evidently our legislators in D.C. haven’t completely taken action on this expiration…

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Benjamin Franklin once said that in this world nothing is certain but death and taxes. It’s an old saying that continues to ring true today. Taxes have simply become a way of life for us. We probably don’t even think much about the taxes we pay here and there on small purchases. But what happens when you end up paying more for the tax than for the actual product? It’s something that takes place in the airline industry more than you might think:

The nation’s air transit system is financed primarily through federal excise taxes and other special charges that have collectively generated $117 billion since 1997 mostly from the pockets of airline passengers. (USA Today)

OK, so you knew you were getting nickel and dimed by the airlines. Heck, some of them even make you pay for food. But what exactly are these airfare fees you’re paying for, and how are these taxes devised? Unfortunately, as with so many things in the airline industry, there are variations on the rule. While domestic airfare includes federal taxes on the price of the ticket, airport charges, security charges, and more, these charges may vary depending on where you’re flying to, where you’re flying from, and which airline you’re flying with. You can visit ARC (Airlines Reporting Corporation) for an in depth breakdown of additional airfare fees (sections 7.0 and 7.2 will be the most helpful).

Just to get an idea of how quickly these taxes can add up, take a look at how a roundtrip ticket from Miami to Cancun became a $176.12 ticket:

Note the Actual Airfare ($75) and the Taxes and Fees ($96.12)

Yep, the initial airfare was $75 and the taxes and fees were $96.12. I think that’s a tax of somewhere around 128%. That type of taxing would make the IRS proud. In fact, it might even put the IRS to shame. Out-taxing the IRS and ranking lower in customer satisfaction than the IRS. Wow, the airline industry is really on a roll this year.