Republican senator defends tax breaks for corporate jet owners
Republican Sen. Jerry Moran of Kansas on Thursday defended the so-called “corporate jet loophole,” which provides special tax deductions for the owners of private jets.
President Barack Obama has called for the corporate jet tax break and similar deductions, such as those for yacht owners, to be eliminated as part of his budget plan to shrink the federal deficit. Ending the special deduction for private jets would save about $3 billion over the next decade.
“The President’s fixation on corporate jets stands in direct contrast with his supposed desire to help the aviation industry and create jobs,” Moran said on the Senate floor.
The Republican senator said ending the corporate jet tax loophole would hurt job growth in Kansas, a state where many private aircraft are constructed. Moran described Obama’s plan as “dangerous” and “hypocritical.” He claimed the tax break was intended to help manufacturers, not the rich.
Private corporate jets can be written off as a business expense for seven years, while commercial jets can only be written off for five years.
“It’s long time past to address the real problems with meaningful spending reductions and every moment spent talking about corporate jet loopholes is a wasted moment,” Moran said.
Watch video, uploaded to YouTube, below:
[Correction: Article incorrectly identified Sen. Jerry Moran as being from Kentucky.]