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Justin Bachman - Business Week
The Airlines Have a Netflix Problem
U.S. airlines have been taking some heat this week for boosting fares to compensate for the end of the 7.5 percent federal excise tax that expired July 23 amid partisan squabbling in Washington. The Senate’s inaction also meant that segment taxes of $7.40 per roundtrip, an $8.20 charge for flights to Alaska and Hawaii and a $16.30 assessment for international flights are not being collected.
Airlines boosted their base fares so a trip’s total cost would remain the same, in essence pocketing the amount of money that would normally go to the IRS.
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