ONEPASS Miles + MCI = Taxes

 
Old Jul 14, 99, 10:08 am
  #1  
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ONEPASS Miles + MCI = Taxes

I am sure everyone already knows this but just in case, the current charge you receive for the MCI bonus miles is as follows:

91.6 cents per thousand miles deposited in your account. You are also taxed on the tax in the Federal Excise Tax line.

Just FYI,

crju
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Old Jul 14, 99, 11:26 am
  #2  
pgupta011
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Think of all the good ways your tax dollars are being spent.
 
Old Jul 16, 99, 8:19 am
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Join Date: Apr 1999
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If the tax money is earmarked for air transportation infrastructure, I don't really have a problem with it.

If the tax money is used for the Dry Cleaning of Intern's Dresses (undoubtedly a considerable budget item), then I have problem.


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Old Jul 16, 99, 9:29 am
  #4  
pgupta011
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Then you should have a problem with the taxes on purchased tickets.
 
Old Jul 16, 99, 10:32 am
  #5  
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Hmmm, this is interesting. Because we know that the Federal Excise Tax on miles is 7.5%, since we know how much tax MCI pays for 1,000 miles, we can now figure out how much they pay for 1,000 miles!

$.916 divided by .075 = $12.21 per 1,000 miles! That's actually higher than I would have expected at 1.22 cents per mile.
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Old Jul 16, 99, 1:55 pm
  #6  
doc
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Marketing, marketing, marketing. The costs are so high. I've read that it's now the fastest and most likely way to the top for executives in corporate America, reflecting its importance. We are now as much concerned about the box and its shape, size, color etc. as we are the product inside. As so we are concerned with FF miles.
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