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.
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.
Answer by amazinggrace83 at 6:56 PM on Jun. 29, 2011
Answer by dullscissors at 6:56 PM on Jun. 29, 2011
Answer by attap5 at 7:01 PM on Jun. 29, 2011
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?
Answer by grlygrlz2 at 7:09 PM on Jun. 29, 2011
Next question overall
WHICH TYPE OF QUESTIONS DO YOU THINK GET THE MOST BUMPS?