Look out, GOP! That big metal bird is going to crap on you!
You know the drill. If you cut taxes on industry X, they'll "pass the savings on" to consumers! Yay!
Only they don't. Not to put too fine a point on it, but it's because Republican theories on everything, including taxes, are stupid bullshit and everyone in the world knows it. Laura Clawson knew it. Second jen knew it.
If you didn't, you do now:
Airlines raise fares to scoop up tax lapse
Many airlines raised fares in recent days to take advantage of a lapse in ticket tax collection after Congress failed last week to fully fund the Federal Aviation Administration budget, but passengers will likely not notice any price difference.
The expiration of the FAA reauthorization on Friday means some aviation taxes are no longer being collected. These include a 7.5 percent sales tax on U.S. air transportation and a 7.5 percent sales tax on the purchase of air miles, said fare watcher FareCompare.com. Additionally, taxes on jet fuel are also reduced.
"Friday evening we adjusted prices so the bottom line price of a ticket remains the same as it was before prior to the expiration of federal excise taxes, etc.," American Airlines spokesman Tim Smith for AMR Corp's American Airlines said by email.
Here was the perfect opportunity for Republicans and their business allies to manufacture some proof for their stupid mantra, but ... surprise! The industry grabbed the money and flipped their allies (and their customers) a big double bird.
F you! We're keeping the money!
At least when it was coming out of your pocket as taxes, you had a chance at seeing some benefit from it. But now it's just going straight into the coffers of the airlines. But don't worry! They're using it to pay someone to tell you how good this is for you!
"This short-term additional revenue for airlines, which does not mean a fare increase for consumers, benefits all stakeholders -- customers, employees and investors -- by temporarily improving tiny industry margins to better cover costs, and enable airlines to invest in their product and service," [Air Transport Association spokesperson Jean] Medina said.
See? The best thing you can do for yourself is pay the industry more money. That way, the industry will have more money! And who doesn't benefit from that? Oh, and they'll totally be able to serve you better. So look out for that, coming to an airport near you, no doubt! How will you know you're being served better? Look at the cost of your ticket, of course. If it's higher, that's better!
And here I foolishly thought the low tax theory was that by cutting taxes, ticket prices would go down, more people would fly as a result, and airlines would create more jobs to serve those additional passengers. Instead, the reality is that airlines step in and steal what used to be tax money and just keep it. No fare breaks, therefore no more fliers, therefore no more jobs.
Airlines are being subsidized to kill jobs! Teh HorrOrZ!
By the way, why shouldn't you expect the same thing from, say, school vouchers? Or medical savings accounts? Private schools that are successful and profitable right now with their expensive tuition should be expected to charge their expensive tuitions plus the cost of a voucher, right? It won't cost their existing clientele any more money out of their pockets. They'll just take the vouchers and add them on top of what they already pay. And poor people? Well, they won't be able to get in and disrupt the success of the good schools, since they'll only have vouchers worth what tuition used to be. Which is why private schools like the idea so much! They make extra money, and no poor people get in, even though they now have money! Win-win! What are you complaining about, poor people? We gave you money! Ingrates!
This stuff never works, because the bottom line when it comes to money is still the same: everyone wants as much as they can get. The moaning and groaning about taxation, and how much of that money the super-rich and giant corporations would be willing to let all the rest of us have if we'd just cut their taxes and be patient, is and always was bullshit.
Thank you, and have a nice day. You were right all along. Don't you feel great?