Democratic senators have introduced legislation aimed at stopping airlines from charging travelers for carry-on bags by closing what they call a “tax loophole” that allows airlines to avoid paying taxes on fees for non-essential services.
The “Block Airlines’ Gratuitous (BAG) Fees Act” follows last week’s announcement from low-cost carrier Spirit Airlines that it plans to charge travelers up to $45 for carry-on bags to be stored in overhead bins.
According to the senators, the legislation would designate carry-on baggage as a “necessity for air travelers.” While airlines pay a 7.5 percent federal tax for fares, they do not pay the tax on fees they collect for so-called “non-essential services,” such as fees for carry-on bags to be stored in overhead bins.
“Airline passengers have always had the right to bring a carry-on bag without having to worry about getting nickel and dimed by an airline company,” U.S. Sen. Charles E. Schumer, D-N.Y., said in a statement. “This latest fee crosses the line and is a slap in the face to travelers. Our legislation will rein in the airlines and keep air travelers from being gouged every time they board a plane.”
While a number of airlines have started charging customers to check bags or purchase snacks, Spirit appears to be the first to charge for carry-on items that passengers would place in overhead bins. Spirit, which said it is also lowering its fares, will not charge for so called “personal items” that fit under the seat in front of a passenger.
“Carry-on luggage is where people keep items essential to their health, work, and safety like laptop computers, medications, food to eat on the plane, baby formula, eye glasses and other items that need to be kept close at hand,” Sen. Ben Cardin, D-Md., said in a statement. “These are personal items that airline passengers should not be charged to keep with them in the cabin.”
The Treasury Department previously ruled that carry-on bags are non-essential items for air travel.
