Res Communis

Obama looks to cut tax benefit for corporate jet owners

by Sara M. Langston with the blog faculty

Source: Bloomberg.com

Obama mentioned the corporate jet break six times, criticizing Republicans’ unwillingness to include tax increases in legislation to raise the federal debt ceiling. Republicans are pressing for spending cuts in the measure, which must be passed before Aug. 2, when the Treasury Department projects the U.S. will no longer be able to meet its debt obligations.

Previous administration proposals to encourage business investment have benefited the aircraft industry. Under the tax law that Congress passed in December 2010, companies purchasing new equipment — including jets — can deduct the entire cost of equipment purchases in the first year instead of taking depreciation deductions over time. [more]