Tax on FF miles given by phone companies
Nov 10, 1999 | 10:21 am
#1
Original Poster
Join Date: Feb 1999
Location: Sacramento area, CA USA
Programs: UA Gold Million Miler, HH Gold, Marriott Gold
Posts: 2,858
Tax on FF miles given by phone companies
Just got a mailer from Sprint that we will be taxed (by the Feds, they say) $1/1000 FF miles sent to my airline account. This will show up on the phone bill. How did that get sneaked past us? Time to write to our elected officials. This is the foot in the door. Can't tax us on use of miles - tax us when getting them. What's next? Taxing the airlines when buying tickets? HELP!!!
Nov 10, 1999 | 10:51 am
#2
A FlyerTalk Posting Legend
Join Date: May 1999
Posts: 46,817
Unfortunately Karen, this is not really new and it has come up before once or twice in different threads- first under MCI. Sadly, Sprint is just following the leader here. Hopefully your bonuses will help make up for it!
Nov 10, 1999 | 3:43 pm
#4
Guest
Posts: n/a
This has been discussed many times - not once or twice. It also shows up under Hertz, which taxes airline miles (but not Hertz points). I belive that airlines also add the tax when selling consumers the miles, so if you buy miles directly from say Delta, they will add a 7.5% tax. The Feds passed the tax a long time ago.
Nov 10, 1999 | 7:15 pm
#5
Join Date: Sep 1999
Posts: 363
Taxes like this seems like a tricky idea to me. It's like the high hotel taxes in some cities or the departure fees on international tickets. They think we'll take it. Why does it cost $60-70 to fly internationally? What does the tax give us? Nothing.
Nov 11, 1999 | 12:10 am
#7
Original Poster
Join Date: Feb 1999
Location: Sacramento area, CA USA
Programs: UA Gold Million Miler, HH Gold, Marriott Gold
Posts: 2,858
I had MCI back then and never received a notice nor did I spot it on my phone bill. Shame on me! Better yet, shame on them. How can one phone co charge tax and not another if the Feds are doing the taxing??? Or are they passing on the tax to us that they actually owe? An excise tax requires a sale - are they saying that they are "selling" us miles?? Sounds like a stretch.