Thursday, July 07, 2011
Why Government Making Corporate Jets More Expensive Is Bad for Everyone
Much has been made of President Barack Obama’s repeated demonizing of corporate jets and the people who fly on them in his June 29th press conference.Those of us who pay attention to history learned a lesson twenty years ago.
While pundits and politicians haggle over whether alterations in the depreciation schedule of corporate jets will actually have an impact on the deficit, those in the general aviation trenches are furious.
Aircraft Owners and Pilots Association (AOPO) President Craig Fuller told The Daily Caller that Obama’s comments have cast a pall over the industry, causing many who were considering buying a plane to back away from making a purchase.
“The industry has suffered terribly in the last two and a half years and it has just started to recover. Most of the signs were starting to look good,” said Fuller. “We are so angry as an industry and we have all come together to try to bring a more fair and balanced description to the debate.”
President Bush, in his budget proposals, asked Congress to repeal the 10 percent luxury tax on yachts priced at more than $100,000 (and also on private planes that cost more than $250,000). The repeal, which Congress is likely to approve, would be retroactive to Feb. 1.Emphasis added.
Since the tax took effect in January 1990, hundreds of builders of large and small boats have spoken of it as a stake driven into the heart of an industry already suffering from the recession, tighter bank rules on financing and fallout from the gulf war.
In the last two years, about 100 builders of luxury boats -- recreational craft costing more than $100,000 -- cut their operations severely and laid off thousands of workers. Some builders filed for protection from creditors under Chapter 11 of the Federal Bankruptcy Code.
Obama's either economically stupid, cares more about his left-wing agenda or both. Just don't wonder why the economy continues to flounder.
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