obama

We don’t usually talk about politics here, but it is hard to completely ignore Obama’s proposal to eliminate a tax break for business-jet owners. (The proposal extends the tax-depreciation schedule for business jets to seven years from five years.) I am not anti-Obama, at all, but it is what it is.

We believe the consequences of that tax break will not make much money for the government, but it will have repercussions in the aviation industry. Catch phrases have cropped up, terms like “demonizing private aviation” and “engaging in class warfare.” Obama does not seem to be aware of that (to use an old catch-phrase) “trickle down” economics. The tax break is incentive for corporations and private owners to purchase new jets. The proposal does attack aviation, which * employs 1.2 million people and generate $150 billion in economic activity.

How can a depreciation allowance for private jets prevent the rich from paying enough taxes to finance government child safety programs? Where is the logic behind the theory? It is obvious if you look at the results: what is actually involved is a politician courting public opinion, because the majority of Americans can’t afford jets, and will gladly agree to a tax on rich folks, i.e. them. Most Americans aren’t going to take a long view of how a tax will affect an entire industry. They’re just relieved that there are taxes coming out of some other guy’s pocket.

But the tax will affect an entire industry, those 1.2 million people working in aviation, building planes and buying them. Those unbought private jets don’t get built, don’t get sold, don’t get flown, don’t get maintained, don’t get stored in aviation hangers. That means a lot of jobs for a lot of pilots, a lot of small charter lines, mechanics and support crews.

With tax proposals like this one, one wonders if Obama’s long range goal is gunning for the aviation industry to look like Detroit after the exodus of the automotive industry.

How can business owners stay in business and create jobs when the government is steadily chipping away at the foundations of business?

*Statistics according to General Aviation Manufacturers The General Aviation Manufacturers Association represents over 65 of the world’s leading manufacturers of fixed-wing general aviation airplanes, engines, avionics, and components. In addition to building nearly all of the general aviation airplanes flying today, GAMA member companies also operate aircraft fleets, airport fixed-based operations, pilot training, and maintenance facilities worldwide