Is a Simulacrum or Pragmatism Driving Corporate Jet Tax Policy?

One of Dassult's smallest corporate jets, the Dassault Mystere Falcon 10 © Justin Smith | Wikimedia Commons

When I heard President Obama’s Press Conference on June 29, 2011, I wondered if corporate jet tax policies were being driven by a simulacrum or pragmatism. The references to corporate jets seemed to be more aligned with a simulacrum; and the tax policy aspects seemed to be driven by pragmatic concerns with a smattering of campaign type rhetoric. Consequently, the President’s comments generated some strong reactions from associations/lobbyists, the private sector, and unions.

On June 29, 2011, the President and CEO of the General Aviation Manufacturers Association, and the International President of the International Association of Machinists and Aerospace Workers issued a news release with an attachment of a letter addressed to President Obama which was critical of his remarks about corporate aircraft and proposed changes to the tax code. After complementing President Obama on his emphasis on manufacturing, new technology and innovation, they expressed concern that his rhetoric and proposed tax changes would negatively impact the United States general aviation industry which has about 1.2 million jobs linked to it, contributes about $150 billion annually to the U. S. economy, and is a major source of exports.

During the severe economic downturn in 2008, ill-informed criticism of corporate jets and business aviation exacerbated the challenges facing our industry, which led to depressed new aircraft sales and jeopardized very good, high-paying jobs throughout the United States. More than 20,000 highly skilled IAM members were laid off in this industry.

As our industry looks to begin a recovery and the workforce returns to their high-skilled jobs, we are very concerned that the rhetoric coming from some in your Administration will lead to similar economic difficulties. While such talk may appear to some as good politics, the reality is that it hurts one of the leading manufacturing and exporting industries in the United States. And it adds to the pain so many working families have endured.

Ed Bolen, The President and CEO of the National Business Aviation Association, a lobbyist, which represents more than 8,000 companies which serve the business aviation . . .

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