
FOR IMMEDIATE RELEASE: July 25, 2011
CONTACT: Thayer Verschoor
(Phoenix, AZ) – President Obama proposed increasing taxes for corporate jet owners last Saturday. The current tax law allows owners of jets to write off the depreciation over the course of seven years. Obama wants to shorten that time to five years in spite of the fact that he lobbied for the current law in his 2009 stimulus package.
And what is the position of the Arizona Democratic Party Chairman Andrei Cherny? In a recent East Valley Tribune article, Cherny was quoted as saying, “. . . ask people who are getting a tax loophole to pay for corporate jets, to sacrifice.” In total, general aviation (GA) dumps over 2.77B dollars into Arizona every year, including $855.6M in payroll. Maybe Cherny is okay with cutting manufacturing industry jobs in Arizona, but we are not.
According to General Aviation Manufacturing Association (GAMA), Arizona is currently home to 13,368 GA jobs, 314 civil use landing facilities, 6,896 active aircraft, 20,585 pilots, and 148 repair stations. Many of these companies that include AmSafe Aviation, FlightSafety International, Honeywell Aerospace, Parker Aerospace, and Universal Avionics are located in Arizona.
Baffled by Obama’s attacks on the general aviation industry, Katie Pribyl, Director of Communications for GAMA said, “U.S. general aviation manufacturing industry contributes $150B to the economy each year, and supports 1.2 million jobs.”
The word “manufacturing” is significant. Time and again, President Obama has said manufacturing jobs must be part of our recovery. However his policies amount to a punch in the stomach for manufacturing, as well as employers across the labor market. In the last week Cisco, Lockheed Martin and Borders have announced layoffs totaling over 28,000 workers.
Obama’s proposal has a lot of people saying “déjà vu”. Those old enough to remember the Luxury Yacht Tax of the 1990’s can see history repeating itself. In a failed effort to raise revenues, the government imposed a Luxury Tax of 10% on watercraft priced over $100,000. The result? Billions of dollars in lost sales, tens of thousands of lost jobs, and LOWER REVENUES!
Unfortunately, this is just another example of close minded tax-and-spend liberals believing the only solution to our fiscal crisis is to take money from the rich and give it to the poor. In reality, increasing corporate tax liability hurts everyone in the industry, including mechanics, engineers, pilots, suppliers, ground crews, repair stations, and instructors…not just the corporation itself.
It’s time the Democrats learn from the past, and avoid making the same mistakes because America cannot afford more job losses.
###








