Sen. Chuck Schumer wrote a letter to Treasury Secretary Timothy Geithner today, demanding he close the loophole that is letting Spirit Airlines charge up to $45 for carry-on luggage. He wants to reverse a ruling that says carry-on luggage isn't "reasonably necessary," and thus isn't subject to federal taxes. That means Spirit can pocket all the cash from the fees without paying any taxes. Schumer told the Daily News, "Peanuts may not be a necessity, but the ability to carry on a bag is." Schumer said that if Geithner wouldn't stop the fees, he would introduce legislation that would.
Spirit Airlines will put their new policy into effect on August 1st, charging passengers $30 for a carry-on bag if the check in online and $45 if they check in at the airport. Passengers are still allowed one bag that would fit under their chair, such as a purse or briefcase, free of charge. Schumer said that such fees let the airline artificially avoid taxes on luggage and ticket prices, according to YNN; making the bags a "necessity" for travel would then make them exempt from a separate fee.
Spirit Airlines was the first to start charging for a second checked bag in 2005, and Schumer is worried that this new fee may inspire other airlines to follow suit. Schumer wrote in his letter, "When one airline starts charging for a service that was previously standard, other airlines eventually do so too."
