Is the IRS to blame for that $25 charge to check a bag?
There's nothing like trying wedge one shoe at a time into an almost-closed carry-on bag, packing it so tight that you wonder if the seams will hold until you pull it out of the overhead bin. But we all do it, mainly to save that $25 bucks that American, Delta and United all charge you for checking a bag. Last year, the airlines pulled in a jaw-dropping $3.6 billion in baggage fees, and as much as you want to shout all of your favorite curse words at the airlines, you should save a few of them for the U.S. government too.
According to The Hill, some of those who love conspiracies should probably start thinking that that those three airlines are "coordinating to some extent on setting prices for items that used to be free." That includes bag fees, drinks and those $10 snack boxes that cost twice as much as buying the same stuff at the BP station on the way to the airport.
The airlines started charging baggage fees in 2008 as a way to offset fuel prices at a time when oil prices had soared to $145 per barrel. Those extra charges were supposed to be temporary, until the Internal Revenue Service "ruled that 'transportation of baggage' was not taxable." That decision more or less gave the airlines the green light to keep those bag fees forever, which obviously contributed to a tremendous amount of tax-free income, accounting for almost a quarter of some airlines' annual profits.
This year, Congress will "reauthorize funding and establish priorities" for the FAA, which could affect everything from airport infrastructure to that $4.50 Passenger Facility Charge that shows up on every ticket you purchase. Airlines for America, a trade organization for the U.S. airlines, is already urging Congress to refrain from adding additional tax increases on travelers – which is how the organization regards that PFC charge.
Other critics, such as The Hill's Brian McNicoll, hope that Congress will take this opportunity to put a cap on the amount that the airlines are allowed to charge for incidentals like checked baggage, as well as to fund expansion and renovation projects at American airports to prevent passengers from enduring delays, cancellations and all of the assorted headaches caused by overcrowded airports that aren't equipped to handle an increasing number of passengers and planes. McNicoll wrote
Indeed, the shortage of airports, runways and gates make U.S. air travel the most congested in the world. America’s airports welcomed 33 million more passengers in 2011 than they did in 2001, but the necessary expansions did not occur [...] According to the Federal Aviation Administration, Americans lost $22 billion to late departures and airport congestion in 2011 and could lose twice that or more per year within the next five years.
Told you: save those curse words. Unless Congress does something drastic later this summer, you're going to need them.