President Angers NBAA By Equating People Earning Over $250,000
With "Jet Owners"
In a news conference Wednesday, President Obama seemend to
distance himself from the NLRB's position on where Boeing should
build Dreamliners, but a line about tax breaks for "Jet Owners"
drew an immediate, strident response from the NBAA.
In response to a question about the NLRBs lawsuit against Boeing
during the news conference, President Obama said that
companies should have the right to locate their businesses where
ever they want. It was the first time the President has commented
on the issue.
“As a general proposition, companies need to have the
freedom to relocate -- they have to follow the law, but that's part
of our system,” Obama said. “What I think defies common
sense would be a notion that we would be shutting down a plant or
laying off workers because labor and management can't come to a
sensible agreement.
The National Labor Relations Board has filed suit against Boeing
for placing its second Dreamliner assembly plant in right-to-work
South Carolina. According to ABC News, while Obama did say
“(w)e can't afford to have labor and management fighting all
the time, at a time when we're competing against Germany and China
and other countries that want to sell goods all around the
world,” he would not comment specifically on the suit, saying
that the NLRB is an "independent agancy." In general terms,
however, Obama said “(w)hat I think defies common sense
would be a notion that we would be shutting down a plant or laying
off workers because labor and management can't come to a sensible
agreement. And obviously, the air -- airplane industry is an area
where we still have a huge advantage. I want to make sure that we
keep it.”
But the news conference also raised the ire of the NBAA when,
talking about tax breaks, the Preident said "The tax cuts I'm
proposing we get rid of are tax breaks for millionaires and
billionaires, tax breaks for oil companies and hedge fund managers
and corporate jet owners." Obama still hopes to eliminate tax
breaks for those earning over $250,000 per year, according to the
Wall Street Journal. That line drew quick fire from the NBAA.
"The president has inexplicably chosen to vilify and
mischaracterize business aviation – an industry that is
critical for citizens, companies and communities across the U.S.,
and one that can play a central role in the economic recovery he
says he wants to promote," NBAA president and CEO Ed Bolen said in
a statement.
Bolen was referencing the president's remarks concerning tax
policies for general aviation (GA) airplanes. The president
repeatedly denigrated business airplane owners and operators,
apparently to make a case that current tax "depreciation schedules"
for GA airplanes are too short, and should be lengthened.
Bolen said the president's words today fly in the face of
comments he made just last October; back then, Obama championed his
own proposal to accelerate depreciation schedules – something
the president said at the time was intended, "to allow businesses
and investors to deduct immediately the full cost of most
investments [that] will help businesses expand and hire."
"Nine months ago, this president extolled the virtues of
shortening depreciation schedules to stimulate jobs," Bolen said.
"Now he seems to want to reverse course and push ahead with
punitive treatment for general aviation, an industry that creates
jobs, helps companies succeed and serves communities all around
America.
"Furthermore," Bolen said, "The idea that, in the current job
environment, we would meddle with a proven formula for
incentivizing the purchase of American products is unthinkable, and
flies in the face of policies he and other elected officials on
both sides of the aisle agreed to just months ago.
"Equally alarming, the president's disparaging remarks reflect a
total lack of understanding – or a complete disregard –
for general aviation in the U.S.," Bolen added. "The fact is,
general aviation is an industry that employs 1.2 million people and
generates $150 billion in revenues each year. It's one of the
remaining few industries that produces much-needed exports and
contributes positively to the nation's balance of trade.
Additionally, most companies relying on a business airplane are
small and mid-size companies, and they’re flying into towns
with little or no airline service. Simply put, these companies are
using their aircraft to reach for opportunities to keep their
businesses alive in an unforgiving economic marketplace. In the
process, they’re bringing jobs, investment and hope to towns
across the country.
Bolen concluded: "The Obama proposal is bad policy and cynical
politics. We will oppose the idea vigorously, and we call on
Congress to reject it. We need to focus on policies that foster the
growth of business aviation, so that it can continue serving
citizens, companies and communities across the U.S."