I actually don't see the double-taxation problem.

I still struggle with the claim that an award ticket is the creation of new income.

I still view the entire system as a marketing/promotion vehicle that carefully ensures that the airlines aren't just handing out "free" seats. My miles may come from many different sources - credit cards, business travel, personal travel, other partners, conversions from hotels, etc. - but none simply emerged in a vacuum. (OK, Southwest used to give me 1 credit per year on my birthday. Maybe that credit is income? )

They want *us* to perceive the award seat as this $20,000 item, but those outstanding miles used to acquire it were probably on the airline's books for a couple hundred bucks and even that amount was accounted for every time you eat a meal, rented a car, stayed in a hotel, took a flight, used a credit card, etc.