Taxes

Taxes are calculated after Airline Operations and Regulatory Action. Each airline pays tax only on cash above the active threshold.

The standard threshold is $50 and the standard rate is 50%. If cash is at or below the threshold, tax is $0. Otherwise, subtract the threshold from cash, multiply by the rate, and round the result to the nearest whole dollar; a half-dollar rounds up. With the standard rule, $51 pays $1, $70 pays $10, and $71 pays $11.

The Airline Industry Fair Taxes Act temporarily changes the threshold to $35 for three rounds and leaves the 50% rate unchanged. Tax is based on cash at the start of the Taxes phase; the payment is applied before Capital Markets.