As was pointed out in this diary yesterday, with the expiration of FAA funding as of midnight on July 23, 2011, certain federal taxes on air plane tickets were no longer collectible. The result was up to a $50 savings when booking a ticket.
Per Bloomberg article cited:
The disagreement means the FAA has to furlough as many as 4,000 workers tomorrow and stop collecting about $200 million a week in airplane-ticket and other taxes until it is resolved, U.S. Transportation Secretary Ray LaHood said yesterday. Air- traffic controllers, considered essential employees, would remain on the job.
So, of course, the airlines are going to market this, right? I can see it now: "Save some airfare, book your flight before the agreement is reached!"
Right?
RIGHT?!
Here's what is actually happening:
Some airline customers won't see savings this weekend even though several federal taxes on tickets have expired.
US Airways and American Airlines raised fares to offset the tax savings.
That means instead of passing along the savings from expired taxes, the carriers are pocketing the money while customers pay the same amount as before.
See. Proof. Proof that if you lower taxes on a corporation, they will pass those savings on to consumers, and everyone will be happy.
May I be the first to say: Greedy bastards.