IRS: tax everyone, but don’t threaten airlines’ profits

The IRS decided it doesn’t need to tax airlines for the $1.76 billion made in baggage fees, this year. I mean, when you have the chance to add to the airlines’ astounding amount of tax breaks and subsidies, you’ve got to take it, right? And why not give airlines incentive to institute more “fees” that, like entertainment, food, drink, and alcohol, generate tax-free revenue?

Look, TaxRascal is no fan of unfair taxes. We’ve pretty much affirmed that by now, yes? But the airlines are already enjoying all kinds of gentle caresses from the IRS (as well as basically every other government agency ever created, ever), so giving them a pass on another somewhat despicable revenue stream is silly, if not unconscionable.

Facts on the ground are changing, and the tax code should follow suit. Airlines are participating in a cashgrab orgy, and given the loose reins, there’s not an end in sight. Just a couple weeks ago, Delta & Continental both increased their baggage fees, tempting other carriers to follow. Delta’s increase moved their fees to $25 for the first and $35 for the second, up from $15 & $25. Delta’s been the pioneer in the baggage fee frontier, with the other legacy airlines quickly following suit once the sky doesn’t fall on their heads.

At the very least, our buddies in the IRS should take their rightful slice of the pie. A couple billion drops won’t fill the deficit bucket, but it’s a start. It’s a simple, common-sense move that’s been sorely lacking in the tax code lately. Which is exactly why it won’t happen, but TaxRascal likes to dream.

All that being said, it appears there’re a few IRSZombies who’re tired of the fees, too:

“This ruling does not address whether fees for the Services are reasonable because such a factor is not necessary to reach a conclusion on the facts provided herein.”

Amen, little taxman. Amen.

(Here’s the code being referenced, btw.)