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Release: Rokita Highlights Hoosier Small Business Owners in Budget Hearing – “The Real Face of General Aviation”
March 13, 2013
Contact: Josh Britton
Phone: (202) 225-5037
Rokita Highlights Hoosier Small Business Owners in Budget Hearing – “The Real Face of General Aviation”
(Washington, D.C.) – During this evening’s markup of the Fiscal Year 2014 Budget resolution in the House Budget Committee, U.S. Rep. Todd Rokita highlighted Hoosier small business owners Dan and Andi Montgomery of Montgomery Aviation, Inc., which provides general aviation services in Central and North-Central Indiana.
Rokita cited Montgomery Aviation as a business that would be harmed by a Democrat-sponsored amendment under consideration by the committee to alter the depreciation schedule for non-commercial aircraft – the so-called “corporate jet tax loophole.” Rokita, a commercial-rated pilot, noted that many small business owners and pilots who fly charity missions, along with general aviation service providers like Montgomery Aviation, would be hurt by the amendment. Click here for a clip of Rokita’s remarks at the hearing:
Over the past 5 years, President Obama has argued for eliminating what he calls the “corporate jet tax loophole” to gain $3 billion over 10 years for deficit reduction – but there is, in fact, no corporate jet loophole.
The amendment to eliminate the so-called loophole would change the depreciation schedule for all non-commercial aircraft (including crop dusters and single engine pistons, not just jets) from 5 years to 7 years. This would increase capital costs for businesses and cause a drop in aggregate demand, with negative consequences for manufacturing employment and general aviation service providers.
General aviation, which contributes more than $150 billion annually to the economy and employs more than 1.2 million Americans, provides medical flights for emergency and non-emergency treatment, airborne search-and-rescue, disaster relief, firefighting, emergency evacuation, and law enforcement activities, and plays an integral role in agriculture, fishing, pest control, forestry, and wildlife management.