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IRS Wades Into FAA Shutdown’s Tax Holiday Airfare Hikes

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The outrage over the recent 7.5% airfare hikes during the “tax holiday” intensified yesterday after the Internal Revenue Service (IRS) asked airlines to refund taxes to travelers who bought their tickets before last weekend’s partial FAA shutdown.

In our ongoing “tax holiday”coverage, we have Peter’s most recent report on the CBS Early Show.

Watch Peter explain the legality of raising ticket prices, what could happen to airline tax rates, what role the IRS plays, and what this tax crisis means for consumers buying tickets or planning to travel today and in the weeks to come.

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