Consumer Traveler Today: Feb 2

Consumer Traveler Today: IRS: Airline baggage fees not taxable as transportation, security fees are taxable
 
 
IRS: Airline baggage fees not taxable as transportation, security fees are taxable
What we’re reading: Boeing may scrap 787-3, planes with maintenance problems still fly, Chicago gets extension for Midway sale
GAO faults TSA on counter-terrorism list
Nightmare on Craig’s List
Will Southwest sell Wi-Fi for peanuts?
IRS: Airline baggage fees not taxable as transportation, security fees are taxable
Posted: 03 Feb 2010 03:30 AM PST
A few business magazines and some blogs have commented on this "non-taxable" ruling. But upon further examination, baggage fees are taxable, just not as transportation. It appears that taxes are eventually collected from the airlines for these fees as overall corporate profits and passengers may actually benefit from not having 7.5 percent transportation federal excise tax slapped on the baggage fees.
       

What we’re reading: Boeing may scrap 787-3, planes with maintenance problems still fly, Chicago gets extension for Midway sale
Posted: 03 Feb 2010 03:00 AM PST
Boeing likely to scrap 787-3, planes with maintenance problems still flying, Chicago granted extension for Midway privatization
       

GAO faults TSA on counter-terrorism list
Posted: 02 Feb 2010 08:15 AM PST
It's one thing when journalists complain about failures in the country's counter-terrorism activities. It carries greater weight when the Government Accounting Office (GAO) issues a report detailing these failures.
       

Nightmare on Craig’s List
Posted: 02 Feb 2010 07:15 AM PST
My Craigie episode started a few months ago when my husband and I decided we desperately needed a vacation. Truth be told, I am not sure we’ve ever taken a vacation. As travel journalists and photographers, we’re always writing, shooting, taking notes and stumbling over stories, even when we don’t mean to.
       

Will Southwest sell Wi-Fi for peanuts?
Posted: 02 Feb 2010 06:15 AM PST
Southwest has made the decision to install what is, for now, a rather high-tech frill — on-board Wi-Fi. According to swabiz.com, the airlines business travel website, the system is being installed on some flights this year and by 2012, all of Southwest's 540 aircraft will offer high-speed internet.