Says User Fees, Tax Changes Will Damage The Industry

The Alliance for Aviation Across America issued the statement in response to the release of President Obama's proposed Fiscal Year 2014 Budget Plan, which the organization says contains a number of harmful proposals, including a 100 per flight “user fee” tax on operators and businesses that use general aviation, as well as an adjustment of the depreciation schedule that applies to business aircraft, which the Administration has referred to as a “loophole.”

“We are extremely disappointed to see a number of harmful provisions included in the President’s recently-released budget proposal," the statement reads. "Not only did the Administration propose to change the depreciation schedule for the purchase of a business aircraft, which would hurt an industry that has already seen thousands of layoffs and is struggling to recover, but it also includes a per-flight “user fee.”  User fees would decimate business, farms and organizations around the country that depend on these aircraft, who currently pay through an efficient fuel tax at the pump.
 
“It defies reason that the President would continue to denigrate a sector of our economy that supports over a million jobs, and is a literal lifeline to communities around the nation.  The businesses, farms and organizations that use these aircraft are already facing the potential closure of149 air traffic control towers that serve predominantly rural communities around the country, and these additional tax cuts would dramatically affect local commerce, delivery of goods, medical care, organ and blood transport, fire-fighting, flight training and a host of important services and resources that our nation’s rural communities depend on.

“That is why a bi-partisan group of 223 members of Congress recently wrote to President Obama to highlight the harmful impact of these taxes, and why over 160 Mayors from 48 states have called on the President to stop the negative rhetoric and recognize the importance of this industry.  At a time when our nation’s businesses and local economies are struggling to recover, we need to do everything we can to support and not penalize this crucial lifeline to our nation’s small towns and communities.”

FMI: www.aviationacrossamerica.com