Why does the government have to pay a tax? Isn it exempt from taxes?
The federal government is often exempt from state and local taxes, however, the airline passenger excise tax is a federal tax and the federal government is subject to it. While the base fare and taxes are required to be the same for all of a contract carrier’s flights (using the same fare basis) between two cities, the airport and security fees may vary. The fees are based on the number of airports used, even if you do not change planes.