NBAA Slams Proposal To Lengthen GA Aircraft Depreciation

AINalerts » April 25, 2013
April 25, 2013, 3:27 PM

NBAA president and CEO Ed Bolen gave a big thumbs down yesterday to legislation sponsored by Sen. Kirsten Gillibrand (D-N.Y.) “that would single out one industry, general aviation, for a change in its established depreciation schedule.” Gillibrand’s proposal would extend the current five-year tax-depreciation schedule for general aviation aircraft to seven years.

She claims that closing this “corporate jet loophole” would free up funding that would allow the FAA to halt sequestration-related furloughs of air traffic controllers. “It is estimated that this would save $2.702 billion over the next 10 years, which would more than pay for the air traffic controllers,” she said.

“Proposals like this one appear to put politically charged rhetoric ahead of serious policies for addressing the nation’s deficit,” Bolen said. “There is no ‘loophole’ involved in tax policies on aircraft purchase or other business assets; instead, such policies were recommended by the IRS decades ago, made into law by Congress in the 1980s and apply to everything from computers to cars to aircraft. The idea behind such policies is to encourage American businesses to continually upgrade the products they use, so they can remain competitive.”

Bolen’s argument for the shorter depreciation schedule was also validated by an unrelated tax study issued yesterday by the nonpartisan Tax Foundation. In this study, the group found that shorter depreciation schedules encourage more investment by businesses, causing the economy to grow at a faster pace.

FILED UNDER: 
Share this...

Comments

No Avatar
pilotman46
on April 29, 2013 - 3:24pm

The obama administration is making the cuts that they think will cause an outcry for more taxes and spending. The FAA could have cut other areas, rather than the controllers . As far as the "loophole " goes, when someone buys a new plane to get a tax break, that helps employ many workers who don't need a tax break.

When the Clinton Ad. passed the 10% luxury tax to penalize the rich, the real losers were the people who lost their jobs because the "rich" quit buying . After a few years the luxury tax was phased out. "Class warfare" helped get Obama re-elected, so it will always be a part of his strategy. Personally, I don't know anyone who ever got a paycheck from a poor person.

No Avatar
Lardo
on April 29, 2013 - 4:09pm

“Proposals like this one appear to put politically charged rhetoric ahead of serious policies for addressing the nation’s deficit,”

Proposals like this one? For crying out loud. This is "situation normal". Putting politics ahead of policy is SOP for Washington.

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.

 
X