Sunday, April 9, 2017

What a Relief: Here's One Thing That Won't Be Taxed in the Coming "Tax Overhaul"


The director of President Donald Trump’s National Economic Council told a room full of chief executives on Tuesday that they likely don’t need to worry about their private jets being taxed.

Speaking at a White House “town hall” with executives about infrastructure, NEC Director Gary Cohn said the Trump administration wants to upgrade air-traffic control as part of an infrastructure plan.

He said the CEOs may be against a forthcoming plan if there’s a tax on general aviation — which would include their private jets.

But he added: “We’re probably not even going to tax general aviation.”

-RW 

(via MarketWatch)

2 comments:

  1. FWIW, since 1970, general aviation has been taxed via fuel taxes. The current rates are 21.9 cents per gallon for jet-a (kerosene for turbines) and 19.4 cents for 100LL (gasoline for piston engines). This revenue is earmarked for the FAA but it can wind up anywhere.

    What has been proposed by the last several administrations is to add landing fees. These landing fees would be in addition to those charged by some private airports and most class B (large commercial) airports.

    As a pilot and an airplane owner, I'd like to keep my costs down and not be penalized for staying in practice. As a libertarian, I'd like to see the fuel taxes go away and institute some sort of fee for time spent under the watch of the various divisions of air traffic control, i.e. tower, TRACON and center. With the requirement that all aircraft operating under these divisions have ADS-B (automatic dependent surveillance - broadcast) transmitters operational by Jan. 1, 2020, the collection of airtime per division per aircraft will be easy.

    Ultimately, I'd like to see a monthly accounting of total time per tower, TRACON and center sector and an commensurate charge with the proceeds going directly to fund each division pro rata. We have way too many towered airports that cannot justify staffing (based on their number of daily operations) and several non-towered airports that *should* have towers (for the same reason). Such a funding scheme would take politics out of the equation (I know... I'm dreaming).

    But, to get back on point, Cohn's statement that “We’re probably not even going to tax general aviation.” portrays GA as somehow slipping through the government's confiscatory fingers is entirely inaccurate.

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