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3 Bumps

Let the class war games begin?

President Obama has a new term for the people he wants to tax more: jet owners.

In his news conference today, the president said: “I think it’s only fair to ask an oil company or a corporate jet owner that’s doing so well to give up that tax break….I don’t think that’s real radical.”

Asking private-jet owners to give up tax breaks may not be that radical. And it probably would be supported by the vast majority of the nonjet-owning voters.

The problem is that most of the people that would be subject to the higher taxes the president wants aren’t likely to be private-jet owners. Someone earning $250,000 a year–among those scheduled for a tax increase in 2012–is unlikely to afford a jet–or even a few charter trips on a jet.

For those, like the president, who may not be well-versed in Jetonomics, here are some of the basics. The numbers come courtesy of Jay Duckson at Central Business jets:

COST OF BUYING A JET

New Citation CJ (entry level jet)–$5 million. Annual operating costs (fuel, hangar space, pilots) about $500,000.

Cheapest Used Jet–$100,000 to $500,000. Annual operating costs (hangar, pilots, mechanics, fuel) about $1 million a year.

COSTS OF CHARTERING A JET

Typical charter–$3,000 an hour

It is possible, of course, that someone earning $250,000 a year might spend 5% to 10% of their annual income on a single flight by chartering, in which case we could call them “corporate-jet fliers.” But it is unlikely. Even more unlikely is someone earning $250,000 a year paying $500,000 to $1 million a year to operate a jet–even if they received it free.

According to Mr. Duckson and others, most of those who own their own jets have net worths of $100 million or more and earn more than $10 million a year–minimum.

The President may be right that is fair to tax private-jet owners. He may even be right that it is fair to raise taxes on those earnings more than $250,000 a year. But the only kind of jet owned by people earning $250,000 a year would be the kind that sits on your desk.

How rich do you think you have to be to own a jet?

ADDITIONAL NOTE: While Obama was referring in part to the Democratic effort to close a tax loophole for jet owners, known as “accelerate depreciation,” the loophole would raise only $3 billion over the next decade. The larger point is that his “jet owner” comment blurs the lines between super-rich jet owners and the far lesser rich, whose whose taxes would go up under the Democrats plan.

Answer Question
 
Carpy

Asked by Carpy at 6:51 PM on Jun. 29, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (27)
  • http://nationaljournal.com/whitehouse/obama-it-s-kids-versus-corporate-jets-on-debt-ceiling-talks-20110629
    Carpy

    Comment by Carpy (original poster) at 6:52 PM on Jun. 29, 2011

  • He says that to make the uninformed believe that all of these people can afford it. You know his little minions. This is yet another point where Obama proves he doesn't know what he's doing and he doesn't know what he is talking about.

    amazinggrace83

    Answer by amazinggrace83 at 6:56 PM on Jun. 29, 2011

  • BO looks so much smarter than he actually comes across. guess i shouldn't judge a snappy dresser by his covering.
    dullscissors

    Answer by dullscissors at 6:56 PM on Jun. 29, 2011

  • I think he just can't figure out how to live like a normal person. He grew up in the projects on welfare and then all of a sudden had a lot of money. He doesn't know an honest days work. I think a lot of his "tax the crap out of the rich" and "spread the wealth" has to do with the fact that his parents had money but didn't share with him, he was raised by his grandmother who was poor. I think he loses sight of the fact that he just had selfish parents and he wants to punish everyone else. If you work for it, it should be yours. If you want better, go to school and get a better job. You don't punish someone for success, that's just wrong. And there are places that $250,000 isn't much. Every try and rent a house in New York? How about $2-3,000 a month for rent for an apartment. What do you think you have to make to pay that kind of rent?
    attap5

    Answer by attap5 at 7:01 PM on Jun. 29, 2011

  • This is yet another point where Obama proves he doesn't know what he's doing and he doesn't know what he is talking about.

    Make no mistake. He knows exactly what he is doing.
    Carpy

    Comment by Carpy (original poster) at 7:02 PM on Jun. 29, 2011

  • He grew up in the projects on welfare and then all of a sudden had a lot of money

    He did not gow up in the projects or on welfare. His grandparents that raised him were rather well to do.
    Carpy

    Comment by Carpy (original poster) at 7:03 PM on Jun. 29, 2011

  • He would also be raising the tax rate on himself as he is a "has".
    Sisteract

    Answer by Sisteract at 7:07 PM on Jun. 29, 2011

  • Does he want to tax Cesna and Float Plane owners, too? I need to read up on this "tax"...  Because I know people here in AK that rely on their planes to get to work every day and they don't make much $$ They just live out in the Bush and fly into one of the small airports here in ANC and some even take the bus to their job once they land..... Obama villainizing a segment of the US population... Anyone really surprised?

    grlygrlz2

    Answer by grlygrlz2 at 7:09 PM on Jun. 29, 2011

  • Let us not forget that there was some rewards for jet purchases in the "stimulus"

    From the Associated Press in 2009:

    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

    http://washingtonexaminer.com/blogs/beltway-confidential/2011/06/flashback-ap-stimulus-includes-tax-break-promote-private-jet-sale#ixzz1Qi4lH05m
    Carpy

    Comment by Carpy (original poster) at 7:16 PM on Jun. 29, 2011

  • He would also be raising the tax rate on himself as he is a "has".
    Sisteract

    Answer by Sisteract 9

    Would he really? Or is it just campaign rhetoric? Loopholes will still be in place.
    Carpy

    Comment by Carpy (original poster) at 7:18 PM on Jun. 29, 2011

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