Yesterday, President Obama lampooned CEO's who take advantage of tax breaks for corporate private jets. The problem? The Heritage Foundation points out President Obama created those tax breaks in his stimulus plan.
The chief economic culprit of President Obama’s Wednesday press conference was undoubtedly “corporate jets.” He mentioned them on at least six occasions, each time offering their owners as an example of a group that should be paying more in taxes.
“I think it’s only fair to ask an oil company or a corporate jet owner that has done so well,” the president stated at one point, “to give up that tax break that no other business enjoys.”
But the corporate jet tax break to which Obama was referring – called “accelerated depreciation,” and a popular Democratic foil of late – was created by his own stimulus package.
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.…
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.
Companies will have to place orders by the end of 2009, and those planes will need to be delivered by the end of 2010 to take advantage of the tax benefit.