Senators Unveil Bill Aimed at Airline Fees

Numerous Senator Democrats are taking aim at carry-on baggage fees in an effort to close a loophole they say give airlines preferential tax treatment for fees on services that are not deemed "reasonably necessary" for air transportation. Under current laws, airlines pay a 7.5% tax for every dollar they collect in fares, but no tax is imposed on fees collected for "non-essential" services, such as carry-on baggage. In essence, airlines do not get taxed for the money they receive for carry-on baggage fees. If passed, it would require that carry-on bags be considered essential and taxed at the same rate as fares. Hopefully this bill would encourage airlines to lower fees or abolish the fees all together.