Business Aviation Insider - May/June 2014 - (Page 5)
The Ofﬁcial Member Publication of NBAA
The Ofﬁcial Member Magazine of NBAA
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Business Aviation Insider (ISSN 2158-088X)
is published bimonthly by the National Business Aviation Association (NBAA), 1200 G St.
NW, Suite 1100, Washington, DC 20005, (800)
As the official member magazine of NBAA, it
provides essential content for companies that
rely on general aviation aircraft to help make
their businesses more efficient, productive and
successful. It is an essential resource for all
NBAA members, regardless of the size of their
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reminding washington: don't use Business Aviation
to score political points
As we cross the mid-way point in this election year, it's clear that elected
officials from both ends of Pennsylvania Avenue in Washington, DC are
seeking opportunities to use misperceptions about business aviation to
advance their policy proposals.
For example, earlier this year President Obama, in his Fy 2015 budget,
proposed changing the rules regarding depreciation of general aviation
(GA) aircraft purchases. Similarly, House Ways and means Committee
Chairman Dave Camp suggested that the existing depreciation schedule
By ed Bolen
for GA airplanes be scrapped, calling it a "special benefit."
As the mid-term elections approach, you can be sure that others in Washington will attempt
to score political points by advocating that the depreciation schedule for business aircraft
purchases be changed so that a "loophole" can be closed. yet every time these proposals are
examined closely, they fail the substance test, and they unfairly mischaracterize the purchase
of GA aircraft used by companies, farms, healthcare providers, flight schools and emergency
responders to grow businesses and connect communities across the U.S.
When Congress set up the tax-depreciation schedule for capital spending on essential equipment, the goal was to give companies an incentive to continue investing in needed business
tools, and, in the process, create jobs and contribute to economic growth. As numerous economists have noted, the current depreciation system for writing down these assets over a period of
years is a proven way to generate business spending on a regular basis, thus ensuring regular
infusions of growth-generating economic activity.
In other words, there is no "special treatment" involved in the business aircraft depreciation
schedule. Instead, such policies were recommended by the IRS decades ago, and passed by
Congress in the 1980s.
the same five-year depreciation schedule that applies to business aircraft also applies to
investments in other types of business assets, including construction cranes, trucks and forklifts.
All are essential tools used by businesses of all sizes, including thousands of small- to mid-size
U.S. companies that depend upon business aviation to compete in a tough global economy.
Even the news media have rejected the notion that GA aircraft purchases receive special
treatment, reporting that such arguments are not credible. Last year, the The Washington Post
debunked the existence of a "corporate jet loophole" claimed by the Center for American Progress. the left-leaning Daily Beast website called a similar assertion by the Obama administration
"a quibble over a technical accounting adjustment."
When elected officials negatively portray business aviation, NBAA works to set the record
straight about the industry's value and the harm onerous proposals could do to it. We advocate
not only through direct contact with Washington policymakers, but also through written newspaper pieces, most recently published in papers like The New York Times, The Seattle Times
and other periodicals.
While we will never be able to completely quell the mischaracterizations about business
aviation that surface in Washington, we know that NBAA and the people with the companies
the Association represents will continue to remind government leaders and the public that the
promotion of misperceptions to advance policy objectives is a short-sighted strategy, and a
detrimental one for an essential American industry. ✣
may/June 2014 | 5
Table of Contents for the Digital Edition of Business Aviation Insider - May/June 2014
Business Aviation Insider - May/June 2014
Regulatory Hot Topics
Tips & Tools
Flying to Brazil? Make Advance Planning Your Goal
Smoothing the Process of Coming Home
Cabin Crews: Prepare for International Travel
Business Aviation Brings Customers to Marvin's Door
Focus on Europe
Business Aviation Insider - May/June 2014
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