red states rule
07-04-2011, 05:48 AM
After a week of liberal media coverage and watching Obama play the class warfare card - they have yet to tell the voters one important fact about that corporate jet tax credit
First. did you know that tax credit was part of the Obama "stimulus"?
Just a few months after lawmakers scolded auto executives for flying to Washington in private jets, Congress approved a tax break in the stimulus package to help businesses buy their own planes.
The incentive -- first used to help plane makers recover from the 2001 terror attacks -- sharply reduces the up front tax bill for companies who buy assets like business planes.
The aviation industry, which is cutting jobs as it suffers from declining shipments and canceled orders, hopes the tax break in the economic-stimulus bill just signed by President Barack Obama will persuade more companies to buy planes and snap a slump in general aviation that began last year.
"This is exactly the type of financial incentive that should be included in a stimulus bill," said Rep. Todd Tiahrt, R-Kan., in an interview. His state lost at least 6,900 jobs at Cessna and Hawker Beechcraft, both based in Wichita.
Roughly 11,000 jobs have been cut in the last three months by the 65 or so member companies of the General Aviation Manufacturers Association, an industry trade group.
The industry needs a stronger economy, not a tax break, to recover, according to aviation consultant Richard Aboulafia with the Teal Group in Fairfax, Va.
"People and companies buy jets when they need new planes and feel good about the economy," he said. "If they don't feel good about things, a tax break isn't going to help."
Officials from industry trade groups disagree, saying a tax break will spur purchases, and give sales teams another tool to keep customers from canceling orders.
Many economists believe the current recession will last until at least the end of this year and may extend into 2010.
"It's trying to give you a reason to act now, rather than sit on the sidelines for the next two years," said CEO Ed Bolen of the National Business Aviation Association, a trade group that represents general aviation interests of 8,000 companies.
The incentive -- known as accelerated depreciation -- lets companies take a larger deduction in the early years of the life of an asset such as a plane.
Read more: http://www.foxnews.com/politics/2009/02/18/stimulus-includes-tax-break-promote-private-jet-sales#ixzz1R8Fr3NFI
I am not surprised the liberal media ignores this fact - nor am I surprised the liberal media is ignoring the "cost" of this tax credit
Charles Krauthammer summed it up perfectly
He himself, as we just heard, said you can’t reduce the deficit to the levels we need without raising revenues. Then he talks about the [tax break for] corporate jets, which he mentioned not once but six times.
I did the math on this. If you collect the corporate jet tax every year for the next 5,000 years, you will cover one year of the debt that Obama has run up. One year.
To put it another way, if you started collecting that tax at the time of John the Baptist and you collected it every year — first in shekels and now in dollars — you wouldn’t be halfway to covering one year of the amount of debt that Obama has run up.
As for the other one, he mentions again and again, the oil depreciation tax break — if you collect that one for 700 years, you won’t cover a year of Obama deficits.
And then here’s my favorite. I worked it out in the car on the way here. If you collect the corporate jets and the oil tax together — get all the bad guys and the fat cats at once — and you collect it for 100 years, it covers the amount of debt Obama added… in February!
And he pretends that he’s the serious adult at the table.
http://www.dailyplunge.com/2011/07/quote-of-the-week-charles-krauthammer/
First. did you know that tax credit was part of the Obama "stimulus"?
Just a few months after lawmakers scolded auto executives for flying to Washington in private jets, Congress approved a tax break in the stimulus package to help businesses buy their own planes.
The incentive -- first used to help plane makers recover from the 2001 terror attacks -- sharply reduces the up front tax bill for companies who buy assets like business planes.
The aviation industry, which is cutting jobs as it suffers from declining shipments and canceled orders, hopes the tax break in the economic-stimulus bill just signed by President Barack Obama will persuade more companies to buy planes and snap a slump in general aviation that began last year.
"This is exactly the type of financial incentive that should be included in a stimulus bill," said Rep. Todd Tiahrt, R-Kan., in an interview. His state lost at least 6,900 jobs at Cessna and Hawker Beechcraft, both based in Wichita.
Roughly 11,000 jobs have been cut in the last three months by the 65 or so member companies of the General Aviation Manufacturers Association, an industry trade group.
The industry needs a stronger economy, not a tax break, to recover, according to aviation consultant Richard Aboulafia with the Teal Group in Fairfax, Va.
"People and companies buy jets when they need new planes and feel good about the economy," he said. "If they don't feel good about things, a tax break isn't going to help."
Officials from industry trade groups disagree, saying a tax break will spur purchases, and give sales teams another tool to keep customers from canceling orders.
Many economists believe the current recession will last until at least the end of this year and may extend into 2010.
"It's trying to give you a reason to act now, rather than sit on the sidelines for the next two years," said CEO Ed Bolen of the National Business Aviation Association, a trade group that represents general aviation interests of 8,000 companies.
The incentive -- known as accelerated depreciation -- lets companies take a larger deduction in the early years of the life of an asset such as a plane.
Read more: http://www.foxnews.com/politics/2009/02/18/stimulus-includes-tax-break-promote-private-jet-sales#ixzz1R8Fr3NFI
I am not surprised the liberal media ignores this fact - nor am I surprised the liberal media is ignoring the "cost" of this tax credit
Charles Krauthammer summed it up perfectly
He himself, as we just heard, said you can’t reduce the deficit to the levels we need without raising revenues. Then he talks about the [tax break for] corporate jets, which he mentioned not once but six times.
I did the math on this. If you collect the corporate jet tax every year for the next 5,000 years, you will cover one year of the debt that Obama has run up. One year.
To put it another way, if you started collecting that tax at the time of John the Baptist and you collected it every year — first in shekels and now in dollars — you wouldn’t be halfway to covering one year of the amount of debt that Obama has run up.
As for the other one, he mentions again and again, the oil depreciation tax break — if you collect that one for 700 years, you won’t cover a year of Obama deficits.
And then here’s my favorite. I worked it out in the car on the way here. If you collect the corporate jets and the oil tax together — get all the bad guys and the fat cats at once — and you collect it for 100 years, it covers the amount of debt Obama added… in February!
And he pretends that he’s the serious adult at the table.
http://www.dailyplunge.com/2011/07/quote-of-the-week-charles-krauthammer/