Baggage fees could soar...again

baggage
baggage

Get out the barbells. It's time to do more lifting to prepare for heftier carry-on bags. That's because airline passengers may be hit with even more expensive baggage fees following a little-noticed recent development.

In a victory for cash-strapped airlines still struggling with lagging demand and high oil prices, the Internal Revenue Service ruled last week that the federal government cannot tax bag fees.

Speaking on behalf of the industry -- which is worried Congress will tax a bevy of additional fees that have angered already beleaguered travelers -- an unidentified carrier asked the IRS to rule on the matter.