Saturday, July 23, 2011

FAA tax has EXPIRED - SAVE MONEY on Flying with No Federal Tax …

The US Congress has failed to approve the 21st extension of authority for the Federal Aviation Administration (FAA).

Efforts to avert a shutdown of the Federal Aviation Administration failed Friday, July 22, 2011 over a $16.5 million cut in subsidies to 13 rural communities. Approximately 4,000 people will be temporarily out of work and federal airline ticket taxes will be suspended.

Airline passengers may see a big savings on their airfares, but the situation is a little confusing. The federal taxes on a $300 round-trip airfare are about $61. Approximately half of that comes from airport and security fees that will continue to be collected, according to the Air Transport Association.

Airlines have been making adjustments to their computer systems and online websites so that taxes would no longer be added to airfares according to the association.

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