A Carry-on Bag Fee Tax Won't Fly - BusinessWeek

A Carry-on Bag Fee Tax Won't Fly - BusinessWeek

"The more interesting questions are whether such fees rob Uncle Sam his due in the form of taxes, and whether this latest ding will spur Congress to pursue a piece of the action. Airfares are subject to a 7.5% excise tax; baggage fees are not, as American learned last September in a legal opinion it sought from the Internal Revenue Service. But the Spirit bag fee has some politicians, most notably Sen. Charles Schumer, D-N.Y., looking to shut what they call a tax loophole by extending the excise tax as a way to raise federal revenues and to discourage such fees"