Unfair or Necessary? Obama’s Proposed Per-Flight Tax on Private Jets

Obama has previously proposed tax increases on the private jet industry. In his 2013 budget, he called for fees up to $100 per take-off for private jets, claiming that the fees could generate up to $7.4 billion over the next ten years. Unfair or necessary?




According to an article published on March 2, 2012 by TheHill.com, lawmakers are pushing back against President Obama’s suggestion to raise taxes on take-offs for private planes.
Obama has previously proposed tax increases on the private jet industry. In his 2013 budget, he called for fees up to $100 per take-off for private jets, claiming that the fees could generate up to $7.4 billion over the next ten years. With the current administration looking at all means possible to cut the ever-increasing federal deficit, Obama’s budget targets taxation in areas where it may hurt the least, i.e. levying small taxes on those who can afford to fly private jets in the first place.
However, the airline industry has been less than thrilled with Obama’s suggested per-flight tax on private planes. Both the general aviation and commercial airline industries have argued that the Obama administration is targeting the industry in an unfair manner as a source of federal revenue.
“Our customers are overburdened with taxes, and airlines have been viewed as effective tax collectors for the federal government for far too long,” said Airlines for America President Nicholas Calio, according to the Hill article. Also, the Alliance for Aviation has gone on record in a news release, stating, “On behalf of thousands of small businesses, charitable groups, flight schools and communities around the country that depend on general aviation, we are deeply disappointed in the President’s inclusion of ‘user fee’ taxes in his…2013 budget proposal.”
Many within the airline industries claim that the taxes are negatively affecting their customers during a time when all citizens are struggling in the economic downturn.
Whether or not the tax proposals do in fact pose an economic problem for private jet users has not been numerically demonstrated, but the airline industry continues to call for less industry-specific taxation in the midst of the current economic climate.
Author Bio:
This is a guest post by Nadia Jones who blogs at online college about education, college, student, teacher, money saving, movie related topics. You can reach her at nadia.jones5 @ gmail.com.



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