|The Federal Transportation Tax Rates|
|When Congress re-enacted the Tax on Transportation of Persons
in 1997, they replaced a portion of the Percentage Tax with a Segment
Fee. Over time, the Segment Fee was scheduled to increase from $1 to $3
per segment, while the Percentage Tax was scheduled to decrease from 9% to to 7.5%.
Thereafter, the Segment Fee was adjusted for inflation. The Head Tax on
international transportation is also adjusted for inflation. The Head
Tax for Alaska/Hawaii is approximately 1/2 of the general Head Tax.