The law, crafted by congressional Republicans and approved with only GOP support, permanently restores a major corporate tax break known as 100% bonus depreciation, which allows businesses to deduct the costs of certain assets in the first year of purchase rather than writing them off over time.
Forbes noted that the bonus depreciation policy "applies to a slew of qualified, physical business expenses which depreciate over time, such as machinery and company cars, but the policy is often associated with big-ticket luxury items, such as private aircraft, and its institution last decade led to a boom in jet sales."
Chuck Collins, director of the Program on Inequality at the Institute for Policy Studies, called bonus depreciation "a massive tax break for billionaires and centi-millionaires that use the most polluting form of transportation on the planet."
"A corporation purchasing a $50 million private jet could potentially deduct the entire $50 million from their taxes in the year of the purchase, rather than spreading the deduction over many years," Collins wrote. "This amounts to a massive taxpayer subsidy, as ordinary taxpayers pick up the tab for the private jet industry and billionaire high flyers."
"Subsidizing more private jets on a warming planet is reckless and indefensible," he added.
The National Business Aviation Association, a lobbying group for the private aviation industry, celebrated passage of the Republican legislation, specifically welcoming the bonus depreciation policy as "effective for incentivizing aircraft purchase." (The Institute for Taxation and Economic Policy argues that "depreciation tax breaks have never been shown to encourage more capital investment.")
Meanwhile, communities across the United States are bracing for the law's deep cuts to Medicaid and federal nutrition assistance, which are expected to impose damaging strains on state budgets and strip food benefits and health coverage from millions of low-income Americans.
" Trump and congressional Republicans have certainly delivered for the billionaire class," said Robert Weissman, co-president of Public Citizen. "This is certainly one of the cruelest bills in American history, backtracking on the country's painfully slow history of expanding healthcare coverage and, equally remarkably, taking food away from the hungry."
"That's a lot of needless suffering just to make the richest Americans richer," he added.
