Tax Breaks for Corporate Jet Owners Center of D.C. Debt Controversy
With the debate over raising the nation’s debt ceiling just wrapping up, you may have noticed President Obama’s making an obscure tax break one of his favorite talking points.
The president repeatedly referred to tax breaks for corporate jet owners as a misguided tax break supported by Republicans in Congress at the expense of scholarship-dependent college students and senior citizens who live off of Social Security.
But the personal aviation industry, and its customers, turned on their afterburners when Obama tried making them the example of an unfair tax system. Industry officials said the president was vilifying an entire industry, scoring cheap political points and being cynical.
The tax break at hand is one that’s been in place for less than a year, allowing faster depreciation of jets used for business purposes in five years instead of seven. Obama wants to take jets out of the equation. All in all, ending the subsidy would bring $3 billion to Uncle Sam’s coffers over the next decade.
Proponents of the tax break labeled it as a way to increase economic activity by encouraging the purchase of large manufactured goods, like planes. Industry officials say they employ 1.2 million people.
Obama mentioned the tax break six times during his June 30 press conference, suggesting its effectiveness as a talking point. He’s also repeatedly mentioned tax breaks for families making more than $250,000 a year, oil companies and corporate tax loopholes as misguided priorities by his Republican opponents in Congress.
As the debt debate wraps up, these types of talking points are sure to die down. But the tax code has shown itself to be an armory of talking points for politicians when the public pays attention to Washington.
While industries like private jet companies benefit from their own tax breaks, hiring a tax attorney can benefit you if you’re being targeted by the IRS. If you have back tax debt, a tax attorney is your best and most effective way to avoid having your wages garnished or having your bank accounts seized through a bank levy.
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