Totally depends on the airline. At 9E, it's weird b/c the pilot deal is different than everyone else. We still have to pay the $50 some odd a year, but 9E flights are free. Everyone else doesn't have to pay the yearly fee, but they have to pay for each flight. Jumpseating is free no matter what, though.
XJT was a fee per ticket, but SWA was totally free. Never had to pay a fee or a per ticket fee at SWA, which not only rocked, it's very, very rare in the industry. Most of the time, you're looking at benes for you, your wife and dependent children and one set of parents (ie natural parents, one nat and on e step-parent, etc). If you're not married, you can normally claim a buddy to get your passes, but you have to stick with the same person for a year or so. So, you can't say it's your brother one month, your sister another month, your aunt the next, etc.
Buddy passes are normally a) a rip off and b) a total headache when your "buddy" gets bumped from a flight, pitches a holy fit, and YOUR pass privileges get nixed. Most of the time, you can buy a ticket for less (at least on CAL and DAL) and NOT have to fly strand-by.
The taxable thing is only at certain airlines it seems. I don't think we get it taxed as income here, and that wasn't the case at XJT or SWA either.