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Cali_Democrat

(30,439 posts) Thu Feb 28, 2013, 06:36 PM Feb 2013

Republican senator Jerry Moran of Kansas defends tax breaks for corporate jet owners

Last edited Thu Feb 28, 2013, 07:47 PM - Edit history (1)

Republican Sen. Jerry Moran of (Kansas) on Thursday defended the so-called “corporate jet loophole,” which provides special tax deductions for the owners of private jets.

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“The President’s fixation on corporate jets stands in direct contrast with his supposed desire to help the aviation industry and create jobs,” Moran said on the Senate floor.

The Republican senator said ending the corporate jet tax loophole would hurt job growth in Kansas, a state where many private aircraft are constructed. Moran described Obama’s plan as “dangerous” and “hypocritical.” He claimed the tax break was intended to help manufacturers, not the rich.

Private corporate jets can be written off as a business expense for seven years, while commercial jets can only be written off for five years.

http://www.rawstory.com/rs/2013/02/28/republican-senator-defends-tax-breaks-for-corporate-jet-owners/

11 replies

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Highlight:

Republican senator Jerry Moran of Kansas defends tax breaks for corporate jet owners (Original Post) Cali_Democrat Feb 2013 OP

Typical Chickenhawk Republican WealthWanker against the American people Berlum Feb 2013 #1

Wow--I pulled the trigger trying to be first & didn't see yours. Jackpine Radical Feb 2013 #3

What a Moran! Jackpine Radical Feb 2013 #2

It cannot be said too often Berlum Feb 2013 #9

;) tularetom Feb 2013 #4

slight correction jljamison Feb 2013 #5

uummmmh - article got it wrong. Moran is from Kansas. DURHAM D Feb 2013 #6

Ya I thought that might be the case Cali_Democrat Feb 2013 #8

Corporate jets are one of the most abused perks around. Yo_Mama_Been_Loggin Feb 2013 #7

Moran must be on the Koch Bros.' payroll meow2u3 Feb 2013 #10

Wait, what is Wichita's nickname again? KamaAina Feb 2013 #11

Berlum

(7,044 posts)

1. Typical Chickenhawk Republican WealthWanker against the American people

Reply to Cali_Democrat (Original post)

Thu Feb 28, 2013, 06:44 PM

Feb 2013

What a Moran (R).

Jackpine Radical

(45,274 posts)

3. Wow--I pulled the trigger trying to be first & didn't see yours.

Reply to Berlum (Reply #1)

Thu Feb 28, 2013, 06:55 PM

Feb 2013

Jackpine Radical

(45,274 posts)

2. What a Moran!

Reply to Cali_Democrat (Original post)

Thu Feb 28, 2013, 06:53 PM

Feb 2013

…sorry…

Berlum

(7,044 posts)

9. It cannot be said too often

Reply to Jackpine Radical (Reply #2)

Thu Feb 28, 2013, 08:15 PM

Feb 2013

tularetom

(23,664 posts)

4. ;)

Reply to Cali_Democrat (Original post)

Thu Feb 28, 2013, 06:57 PM

Feb 2013

jljamison

(128 posts)

5. slight correction

Reply to Cali_Democrat (Original post)

Thu Feb 28, 2013, 07:06 PM

Feb 2013

the advantage for businesses is that they can accelerate the depreciation of the aircraft over only 5 years, as opposed to 7 years for commercial aircraft.

so a 1,400,000 aircraft gives them a $280,000 depreciation each year for 5 years, instead of a $200,000 depreciation over 7 years.

the manufacturers like it because it decreases the short term cost of ownership for their hugely expensive small aircraft. and general aviation is basically on life support at this point given the cost of flying (aircraft acquisition and maintenance, insurance, and fuel)

obama has said he would love to be able to preserve support for the jobs & the industry, but with the current structure there is no way to do that without providing this tax loophole for extremely wealthy individuals.

In theory, i suppose they could get rid of the accelerated depreciation and replace it with a direct subsidy to the manufacturers on a per unit sold basis. how to calculate that subsidy would be pretty difficult -