Let's tax those darn private jet owners

Today is an important day in politics as Congress passed the debt ceiling increase and we are going to avoid that boogieman called federal debt default. I would just like to defend and define some terms used constantly in this recent debate, because behind the rhetoric are real working people and families. First a little history. Almost 20 years ago the private small aircraft industry was decimated by legal suits and federal regulation. These were mostly small prop driven aircraft and for many years no new small planes were built. Imagine the impact on that industry, jobs, and families. Used airplanes kept flying in one of the safest forms of travel so, what gives? A quality industry was killed for no good reason. Small jet aircraft continue to be built (and now some prop planes) but the industry, over all, remains on the edge, as does all air travel.

When politicians attack the private jet owner as depriving the government of revenue (not paying their fair share of taxes)they make a common error for the purpose of forwarding their tax and spend agenda. Folks who own and fly jets are typically the most productive and driven wage earners in America that is why they fly in jets. This group make more money and pay most of the taxes. Allowing most of the rest of us to pay lower and half of Americans to pay no taxes. As a group they tend to own businesses and run big companies that employ hundreds of thousands of people. These are the people who respond to Federal tax incentives (loop holes)to buy equipment and facilities that help employ more people. They take risks, to be rewarded in higher profits which, you guessed it, now they pay higher taxes. Envision a country like the former Soviet Union. No incentive to make profits means lower standards of living( for all classes). The federal government creates incentives to energize the economy and increase employment and yet in this recent debate, you would think jet owners are killing babies. And who is defending the hard working employees who are building their lives by building, servicing, and flying these jets. And of course paying their taxes. So really, jet owners are really just innocent faceless symbols of the rich people that are not paying their fair share of taxes.

There are two real good productive reasons why rich folks and corporations don't pay taxes. And we should cheer them on. Sometimes an enterprise is so successful, they give their excess money away to avoid paying taxes on money they would invest. They give the money normally to a charity that they choose or they create a foundation that is managed by honorable citizens that carries on the giving after the benefactors death. They would rather give the money according to their choosing (wouldn't you?) rather than the government where 30-40% goes to bureaucracy. The other great places to invest are in" loop holes" incentives. If General Electric is not paying taxes, let me assure you they are taking legal advantage of incentives created by the federal and state government. These investments almost always result in job growth which is sustainable (not just do nothing jobs) and generates more tax revenue because of the risks the company is willing to take to generate the jobs and profits. So when someone talks about taxing the billionaires and jet owners, remember all the men and women who work for those folks.

One more example of costly talk. Where I live, we attracted Honda to do research and development on a new small fuel efficient corporate jet. This means hundreds of jobs for our community. Great high paying jobs long into the future. When they hear that we should tax more heavily, jet owners, what are they talking about around their coffee machines and board rooms. Words, mean things and have consequences. Especially to foreign ears. Oil execs, boat builders, car and truck builders, all have ears that hear. Let's get on and tax basketball players and Federal bureaucrats for awhile, not job creators.