Uncle Sam wants your miles: A federal excise tax onfrequent-flier points may soon take a nibble out of yourhard-earned travel bonus--if it hasn't already.
The tax on miles, passed in 1997, had been absorbed by manytravel suppliers for its card members. Effective last fall,however, Sprint changed that policy. "This was a businessdecision," explains Sprint's corporate communicationsmanager Elaina Boudreau. "We had to pass this cost we wereincurring along to our customers."
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