Readers know that flying these days is as enjoyable as a tooth extraction. United Airlines CEO Scott Kirby wants to show customers in seat 34B he feels their pain by -- get this -- endorsing a national wealth tax. Such virtue-signaling is cheaper than complimentary pretzels.
Flight prices have soared in recent months owing to higher jet fuel prices, as well as increasing labor costs from collective-bargaining agreements. Airlines have passed on their higher costs by charging more for things that used to come standard, so flyers often have to pay more for anything other than a middle seat at the back of the cabin.
Mr. Kirby defended his company's use of price differentiation in an interview this week with the New York Times. "The way to give everyone what they want is to charge for the services and products that those customers want," he said. Fair enough.
Even if the extra charges are annoying, they effectively result in relatively more affluent and less price-sensitive customers subsidizing travel for everyone else. Without the add-ons, base fares would be higher. Some people simply wouldn't be able to afford to take their family on vacation. The CEO seems to understand that letting markets determine prices is the best way to maximize public welfare.
But then he took a regrettable flight of left-wing fancy. Asked whether he has a responsibility for dispelling public distrust in CEOs, he replied: "Wealth inequality has become a danger to our society, and we need to address that." By we, he means government.
He added: "We should have a national wealth tax -- it won't work by state because people will just move. And I think we should have inheritance taxes that get close to 100% at some level. I would pay them." Well, no he wouldn't. Inheritance taxes are levied on inheritors, so his kids or other heirs would pay the bill.
Or they might not, since death and inheritance taxes encourage tax avoidance. The same is true of wealth taxes. Washington state this year reversed its increase in its top marginal estate tax rate to 35% from 20% for this reason. United has its headquarters in Chicago, but Mr. Kirby lives in Texas, which has no state income tax. Does he pay income tax in Illinois?
There's also nothing to stop Mr. Kirby from bequeathing his fortune, or donating his $32.3 million in compensation last year, to the feds. Even better, how about offering more leg room in all rows and eliminating middle seats as a gesture to the hoi polloi? We suspect he'd say that none of these suggestions would reduce inequality or the national debt. But the same goes for a wealth tax, which punishes successful entrepreneurs.
This isn't Mr. Kirby's first ride on the left-wing jet stream. During Woke 1.0, Mr. Kirby declared that two things "where we want to lead and make a difference" are "diversity and inclusion, and climate change." Customer service apparently takes a back seat to reducing CO2 emissions.
Mr. Kirby became CEO during the turbulent early days of Covid, though the airline's share price has barely increased from its pre-pandemic high. Maybe he should focus more on pleasing customers and shareholders than his progressive political kibitzers.
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