Possible end of tax subsidies for corporations that purchase private jets met with resistance
July 21, 2011, 04:45 pm
Amid the ongoing debt reduction talks in Washington D.C., President Barack Obama posed the idea of ending tax subsidies for corporations that purchase private jets. The idea was met with strong resistance, particularly from Wichita, Kansas.
In a news conference, Kansas Governor Sam Brownback stated that more than 30,000 people in Kansas work in the aviation industry, and that more than 40 percent of all general aviation aircraft is built in Kansas. Manufacturers like Cessna, Hawker Beechcraft and Bombardier all have plants in Wichita, and approximately 200 local parts suppliers depend on these corporations' business.
"That is why it is alarming that on multiple occasions the president of the United States has seen fit to use business jets as political pawns," said Brownback.
Obama stated that he would like to eliminate "egregious loopholes that are benefiting corporate jet owners or oil companies at a time when they're making billions of dollars in profits."
The proposed cessation of tax subsidies could lead to increased expenses not only for the corporations in question, but for the manufacturing plant workers, parts suppliers and pilots, who already have to worry about pilot insurance expenses.
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