CtTaxed.com

Let’s Kill A Growing Industry Providing New Jobs

Not only new jobs but we are a world leader in this new aviation segment. Which to certain Government leaders is just a new opportunity to raise taxes.

I’m talking about the new very light jet market. A number of airframers, Cessna, Piper, Eclipse, Cirrus and many other smaller players are rushing to market these small 4 to 6 seater jets. The airlines have done such a great job of alienating their core business group, specifically the business traveler a whole new industry is being created.

These small jets can get in and out of small airport which are less congested and apparently something like 80% of American business is within 1/2 hour car ride of a small airport. Leave when you want, don’t get strip searched, no lines, no crowds and only fly with people you know.  And carry all the toothpaste you want on board!

For the business traveler the very light jets represent a way to do business faster and more efficiently. Hey what more reasons do you need to raise taxes? Works for me. Let’s nip that growing segment right at the boarding gate.

And by the way, Pratt is supplying engines to this new segment and a number of other small manufacturers in CT are supplying various electronic and mechanical parts.

From Bloomberg.com

U.S. Private-Jet Fuel Taxes Rise 65% in Senate Accord (Update2)
By John Hughes

April 25 (Bloomberg) — U.S. business-jet owners would pay 65 percent more in fuel taxes to finance federal air-traffic control upgrades, under an agreement among Senate leaders.

The levy would increase to 36 cents a gallon from 21.8 cents now, under the accord announced in a statement today in Washington by Senator Jay Rockefeller, a West Virginia Democrat. Airline passenger fees and taxes wouldn’t rise, he said.

The agreement between Rockefeller, chairman of the Senate aviation subcommittee, and Montana Democrat Max Baucus, who runs the Senate Finance Committee, ends a seven-month standoff that stalled an aviation-funding bill. Today’s deal clears the way for an April 28 vote to bring the bill to the full Senate.

Rockefeller wanted to double fuel taxes for corporate aircraft while cutting fees for airlines, which he said paid disproportionately for aviation services. Instead, he settled for the smaller boost, so that small-jet owners will pay 5 percent of federal aviation costs, up from 3 percent.

The business traveler is the airlines most profitable customer and treated the most poorly. We make reservations often just 2 days in advance, pay full price and get middle seats, while all around us other passengers have paid 1/2 of our ticket price and get better seats. We can’t work at the seats, our laptop screens won’t fit and we are stuffed in to undersized no elbow room slots that pretty effectively prevent all work other than the reading of reports.

The very light jet segment is a direct threat to the airlines and now Senator Rockeffer comes to their rescue. Business engineering by means of taxation policy.

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