Tuesday, July 26, 2011


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

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

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.

For more information please contact: Thayer Verschoor - tverschoor@azgop.org
- 602-957-7770

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