Remarks From The Senate Floor Shed Light On So-Called 'Loophole'
As rhetoric from Washington, DC mischaracterizing business aviation continues to heat up, a Kansas lawmaker has lent his voice to the growing chorus of support for the industry.
Sen. Jerry Moran (R-KS) (pictured in YouTube frame capture) responded last week from the Senate floor to what he termed "a relentless focus on political gimmicks" from the White House when it comes to the administration's rhetoric about business aircraft taxes when discussing deficit reduction, and specifically President Obama's repeated calls to adjust the tax "depreciation" schedule for general aviation aircraft.
While the president is fond of referring to the current, five-year depreciation schedule as a so-called "corporate jet loophole" when discussing the need for tax reform, Moran countered that the policy not only enables farmers and small business owners to utilize small aircraft in support of their enterprises – as do similar appreciated depreciation schedules for cars and trucks – but the policy also spurs manufacturing and helps to create jobs.
"The five-year depreciation schedule has been law for nearly a quarter century, and was not created for the benefit of the 'rich' or 'wealthy,' but for the 1.2 million Americans who make a living building and servicing these planes," added Moran. "Ending the accelerated depreciation schedule for general aviation aircraft will send hundreds, if not thousands, of hardworking Kansans straight to the unemployment line."
Moran's comments were the latest in a groundswell of support from various entities that have spoken up for business aviation against rhetoric and attacks during the financial-crisis debate in Washington, DC.
Numerous congressional lawmakers, economic development officials, and labor organization leaders have also questioned the White House's narrow-minded focus on attacking business aviation, as have some news organizations. Such attacks only serve to score political points, Moran stated, and distract from the urgent need to develop effective policies that will help grow the nation's stagnant economy.
"If the president wants Congress to review the depreciation period associated with certain assets, then why single out one specific industry instead of taking a comprehensive approach? Because attacking 'corporate jets' is a nice political sound bite," he added.
"It is long past time to address the real problem with meaningful spending reductions, and every moment spent talking about 'corporate jet loopholes' is a moment wasted."