No, it is not always zero. Through 2001 they actually paid meaningful
amounts of income tax but not for the past four years although they have
been fairly profitable thoughout their history. They don't pay any
*currently* (past four years) and, absent a change in the tax code, they
probably won't in the future. Naturally LUV is probably the best (or worst)
example as they have the most profitable model. It is somewhat amazing to
me that the industry constantly gets bailed out either through bankrupcy,
subsidies or outright gifts from the public treasury. The public is paying
for the entire infrastructure through passenger facility fees, fuel taxes
and also though General Fund contributions. The industry is generating
wealth (witness people being willing to start new carriers) but it pays
nothing. It is the only industry that I am aware of like this.

Anyway, my point was that GA is paying in indirect ways (income taxes). If
you look at GA pilots or owners, they are well above the median income level
and the only things they get that everyone else doesn't are use of airports
and ATC. This isn't a totally fair way of looking at things because there
are high income people who are not pilots and aren't getting anything. In
my own case, I have paid millions in income tax over the past eight years
(since I started flying) and I wouldn't have earned as much or paid as much
tax if I did not have a personal airplane, so, isn't my use of the
infrastructure effecively being taxed at a very high rate? GA clearly isn't
paying for much of anything through fuel taxes but neither are the airlines
through any kind of taxes. The airling flying public is paying most of the
cost but a large part of the system is for their benefit.

I think that user fees are likely since our current administration abhors
"taxes" but spends like a drunken sailer, hence "user fees".

In any event the best solution is unlikely to be architected by the same
people who have been running the airline or airliner businesses. I think
that everyone can agree on this at least!

Mike
MU-2


"TaxSrv" wrote in message
. ..
"Mike Rapoport" wrote:
For a guy with the handle taxsrv, I am surprised that you don't
know the
difference between GAAP and tax accounting and that you can't
reconcile the
cash flow statement with the earnings statement. Southwest does
not pay
income taxes.

Mike
MU-2

So you are saying that you know what's historically on their Forms
1120. In other words, always zero tax? Not even corporation AMT?
So how'd they get an actual tax refund on a carryback, per their
SEC filing for 2002, if they never paid any tax?

Fred F.