Kansas Lawmakers Buck Obama On Aviation Tax 'Loophole' | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-04.01.24

Airborne-Unlimited-04.16.24

Airborne-FlightTraining-04.17.24 Airborne-AffordableFlyers-04.18.24

Airborne-Unlimited-04.19.24

Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
Watch It LIVE at
www.airborne-live.net

Fri, Mar 22, 2013

Kansas Lawmakers Buck Obama On Aviation Tax 'Loophole'

Even Some Democrats Disagree With The President's Anti-Aviation Rhetoric

After seeming to do everything it could to assure that the Detroit automaking industry was able to survive the recession, Kansas lawmakers, including some Democrats, are scratching their heads over rhetoric coming from the White House concerning corporate aircraft.

Wichita Mayor Carl Brewer is one such Democrat. Though he displays a portrait of the President on the wall of his office, he's been a vocal advocate of maintaining the jobs that produce the business jets and other airplanes which seem to be one of the President's favorite symbols of corporate excess. "As long as you're doing something to threaten my aviation industry ... I'll continue to speak out against it," he told Reuters.

Statistics indicate that the aviation manufacturing industry employs 1.2 million people, many of them union members, and exported nearly $5 billion worth of airplanes last year. Representative Mike Pompeo, a Republican, said that the industry does not want a bailout, just recognition that they are an important creator of jobs in the country. Just "stop bashing them," he said.

But the White House and its allies continue to say that offering accelerated depreciation on assets like airplanes ... the "loophole" that President Obama so often said he wants to close ... and budget items like nutrition programs for poor children and pregnant women are an "either/or" proposition.

Those airplanes, however, are built by people who may never buy one ... though the average wage of an aircraft manufacturing worker in Wichita is $74,000. Reuters says that's nearly twice the regional average. The city produces almost 50 percent of all of the private aircraft built worldwide.

The depreciation schedule that President Obama calls a "loophole" covers hard assets like bulldozers and and computers as well as airplanes ... and has been in place for years. But the "corporate jet" apparently has become the President's favorite target when he wants to point out what he sees as "corporate excess."

Aviation analyst Brian Foley says that stretching the depreciation schedule from five to seven years would not make or break the industry, but others say just the rhetoric from the White House has already hurt the industry. Businesses are reportedly putting off buying airplanes as they wait to see how the tax fight plays out.

Fewer airplane sales means fewer airplanes being built and a need for fewer workers to build them. The ripple effect can be felt at car dealerships, grocery stores, and other small businesses that depend on those workers in Wichita to consume their goods and services.

FMI: www.whitehouse.gov

Advertisement

More News

ANN's Daily Aero-Linx (04.16.24)

Aero Linx: International Business Aviation Council Ltd IBAC promotes the growth of business aviation, benefiting all sectors of the industry and all regions of the world. As a non->[...]

Aero-News: Quote of the Day (04.16.24)

"During the annual inspection of the B-24 “Diamond Lil” this off-season, we made the determination that 'Lil' needs some new feathers. Due to weathering, the cloth-cove>[...]

Airborne 04.10.24: SnF24!, A50 Heritage Reveal, HeliCycle!, Montaer MC-01

Also: Bushcat Woes, Hummingbird 300 SL 4-Seat Heli Kit, Carbon Cub UL The newest Junkers is a faithful recreation that mates a 7-cylinder Verner radial engine to the airframe offer>[...]

Airborne 04.12.24: SnF24!, G100UL Is Here, Holy Micro, Plane Tags

Also: Seaplane Pilots Association, Rotax 916’s First Year, Gene Conrad After a decade and a half of struggling with the FAA and other aero-politics, G100UL is in production a>[...]

Airborne-Flight Training 04.17.24: Feds Need Controllers, Spirit Delay, Redbird

Also: Martha King Scholarship, Montaer Grows, Textron Updates Pistons, FlySto The FAA is hiring thousands of air traffic controllers, but the window to apply will only be open for >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC