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!!!

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!

doc's right, Karen...MCI has been doing it since the beginning of '99, I think.

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.

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.

I'd say the tax that's needed is the gas tax. Provided that it goes entirely to road repair, I'd pay $4/gallon of gas if it gets smooth roads like the autobahn. Trouble is that we would be taxed and still have potholes.

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.

They are passing on a tax that they are assessed. MCI lies and says they are required to pass it on. Only one of many reasons I won't do business with them (the lying, not the tax).