Obama is Just Wrong About Corporate Jets

President Obama said the U.S. needs to end tax breaks for rich people owning corporate jets and that this is one big way to help close the gap between Democrats and Republicans in the on-going argument over raising the national debt ceiling.

Obama mentioned corporate jets at least six times during this week's press conference in the East Room at the White House. Experts agree that there is approximately $3 billion in additional revenue if the tax called accelerated depreciation is eliminated on corporate jets. That's a lot of money, but small pittance in the grand scheme of the national debt. Even more shocking is Obama's sudden focus on this one area of revenue.

The accelerated depreciation benefit for the airline industry was included in the stimulus bill that Obama signed into law. It is now two years later and he wants to eliminate this tax deduction to score political points during a budget battle. Obama has given no consideration to the impact it would have on businesses who have purchased jets already or to the to aircraft manufacturers operating in the U.S.Cessna and Gulfstream have locations in 15 different U.S. cities and employ thousands of workers to build these type of aircraft.

The elimination of the accelerated depreciation deduction makes owning aircraft less attractive to companies that may be more likely to lease or purchase older aircraft. If these companies buy fewer aircraft, the immediate hit will be increased unemployment at manufacturing plants and in the cockpit.As a private pilot, I can already say that there are fewer pilots flying at local airports and the trend is excelerating..

The president points out a potential $3 billion savings, but fails to see the larger picture. Maybe these type of special tax loopholes need a comprehensive review. But targeting a single industry--especially when it's done only for political points--is just plain wrong. Obama cannot believe that a comprehensive review of our tax code could possible occur in the time allowed for the present debt discussion.

The national debt is a big issue. It boggles my mind that our political leaders cannot wrap their head around the fact that we--as a nation--must stop spending more then we bring in. Republicans control the House and have filibuster ability in the Senate. House Speaker Boehner and Senate Minority Leader McConnell have both removed tax increases from the bargaining table. Let's find the cuts we need in government waste and trimming federal agencies. It can--and should-- be done.