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Tipsheet

Ah Ha! It Was Tim Geithner in the Library With the Candelabra

I bemoaned Transportation Secretary Ray LaHood the other day for promising to get those dastardly airline companies because he doesn't like being charged extra for bags. It turns out there's a reason why airlines, by and large, maintain low base ticket prices while charging you extra for everything from bags to in-flight meals and entertainment to overhead compartments. It's the tax code!

Or, rather, it was the Obama administration that in January issued a ruling that "allows airlines to receive preferential tax treatment for fees on services that are not necessary for air transportation." This incentivizes airlines to keep low up-front ticket prices and institute all these myriad fees to make up for it. Predictably, now that private companies are taking advantage of this rule, Democrats are all up in ablaze.

The current crop of Democrats seems to believe they have the power to tell private industry what, where, how and why they can sell their products. This is no different.

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