President Obama upsets some general aviation owners
June 30, 2011, 05:44 pm
President Obama believes that accelerated depreciation, which makes it more cost-effective to purchase new aircraft, is too generous, according to the Aircraft Owners and Pilots Association. He feels that owners can afford to pay more, and wants to raise taxes on private aircraft.
"Imposing higher taxes on GA aircraft by lengthening depreciation schedules is inconsistent both with sound economic principles and with the promises of support made by the President's own Secretary of Transportation just a few months ago during a speech in Wichita," said AOPA president Craig Fuller.
Experts believe that the use of general aviation aircraft helps create thousands of jobs and making them less affordable may be detrimental to the economy. Last October the President proposed accelerating depreciation schedules to encourage new business by lessening the tax burden on purchasers, which seems to contradict the statements he made this week, General Aviation News reports.
General aviation can help make communities more accessible and can play a key role in economic recovery. Individuals who purchase pilots life insurance policies also help contribute money to the economy. Aircraft officials sent the President a letter of deep concern over his recent questioning of the value of corporate aviation, the media outlet reports.
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