Aviation Industry Assails Obama for 'Cynical' Call to End Corporate Jet Tax Break
General aviation employs 1.2 million Americans and generates $150 billion a year in revenue. President Obama praises it as one of America's industries that still maintains an advantage over other countries' manufacturers.
So it disappointed several in the aviation industry when the president on Wednesday held up an obscure tax break for corporate jet owners as an example of why Congress should close tax loopholes as part of any deficit reduction deal.
"While such talk may appear to some as good politics, the reality is that it hurts one of the leading manufacturing and exporting industries in the United States," wrote the General Aviation Manufacturers Association and the International Association of Machinists and Aerospace Workers in a letter sent to the president.
In a lengthy press conference, Obama repeatedly cast the debate over the deficit as a choice between ending tax breaks for jet owners and jeopardizing children's education and safety.
So it disappointed several in the aviation industry when the president on Wednesday held up an obscure tax break for corporate jet owners as an example of why Congress should close tax loopholes as part of any deficit reduction deal.
"While such talk may appear to some as good politics, the reality is that it hurts one of the leading manufacturing and exporting industries in the United States," wrote the General Aviation Manufacturers Association and the International Association of Machinists and Aerospace Workers in a letter sent to the president.
In a lengthy press conference, Obama repeatedly cast the debate over the deficit as a choice between ending tax breaks for jet owners and jeopardizing children's education and safety.
Repealing such a tax break would add up to just $3 billion over 10 years, a tiny step toward the $4 trillion over 10 years that Obama and others are calling for in deficit reduction.
The kind of tax break Obama criticized was actually granted to corporate jet owners in the Democrats' stimulus package in early 2009. That provision let companies take bigger deductions earlier for depreciation.
Several organizations lambasted the president for his rhetoric.
"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," National Business Aviation Association President Ed Bolen said in a statement.
He called on Congress to reject the call, describing the current tax structure for jet owners as a "proven formula for incentivizing the purchase of American products."
"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 said, describing his proposal as "bad policy and cynical politics."
Ironically, Obama praised the U.S. aviation industry just minutes after describing its tax treatment as an example of what is wrong with the tax code.
"Obviously, the airplane industry is an area where we still have a huge advantage. I want to make sure that we keep it," Obama said, as he called on Boeing, union workers and the National Labor Relations Board to resolve a contentious dispute that's dragged on for weeks.
The president also plans to fly in the country's most famous personal jet -- Air Force One -- to get to Democratic National Committee fundraisers in Philadelphia Thursday night.
In their letter, the aviation manufacturers and machinists and aerospace workers groups warned that "the rhetoric" could cause economic hardship. They noted that Transportation Secretary Ray LaHood recently visited the aviation industry hub of Wichita, Kansas, and lauded the industry's work.
The kind of tax break Obama criticized was actually granted to corporate jet owners in the Democrats' stimulus package in early 2009. That provision let companies take bigger deductions earlier for depreciation.
Several organizations lambasted the president for his rhetoric.
"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," National Business Aviation Association President Ed Bolen said in a statement.
He called on Congress to reject the call, describing the current tax structure for jet owners as a "proven formula for incentivizing the purchase of American products."
"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 said, describing his proposal as "bad policy and cynical politics."
Ironically, Obama praised the U.S. aviation industry just minutes after describing its tax treatment as an example of what is wrong with the tax code.
"Obviously, the airplane industry is an area where we still have a huge advantage. I want to make sure that we keep it," Obama said, as he called on Boeing, union workers and the National Labor Relations Board to resolve a contentious dispute that's dragged on for weeks.
The president also plans to fly in the country's most famous personal jet -- Air Force One -- to get to Democratic National Committee fundraisers in Philadelphia Thursday night.
In their letter, the aviation manufacturers and machinists and aerospace workers groups warned that "the rhetoric" could cause economic hardship. They noted that Transportation Secretary Ray LaHood recently visited the aviation industry hub of Wichita, Kansas, and lauded the industry's work.
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