Job creators will invest it back in jobs. Specifically coal jobs..

Why was it not deductible in the first place?

It's not up to government to decide which mode of transportation is the most efficient for any given business situation. That's up to the investors, they're the ones paying the majority of the bill. Unless of course you're one 'those people' that thinks 100% write off means 100% of the expense is returned.

My understanding is this is new. Please correct me if I’m wrong.

http://www.newsweek.com/...ers-tax-break-714381

Why shouldn't the government decide? Let's say you are the only investor in a company. You buy a jet and use it often. At what point should it be a taxable benefit vs a legitimate expense?

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Proud member of the MSF (Maple Syrup Mafia)

When it's not used for business purposes?

According to various news sources, including HuffPo and the Wall Street Journal, the 'Private Jet Tax Deduction' -- which was inserted into the bill at the request of super-liberal Ohio senator Sherrod Brown, a Democrat -- won't actually cost anything and just brings clarity to an IRS memo published 5 years ago. The bill clarifies that... "companies that manage private air travel -- plane owners use them to hire pilots or handle logistics -- do not have to pay a 7.5 percent excise tax on air travel. The 7.5 percent tax is also known as a "ticket tax" and Americans pay it when they travel commercial."

Private air travel is still subject to taxes. They pay a different kind of tax, which is a fuel surcharge that comes out to about 20 cents per gallon of gas. HuffPo notes such planes burn about 300 gallons per hour, so they're paying around $60 per 300 gallons of fuel they take onboard their aircraft. Brown and the private air travel industry have said that the break isn't for the millionaires who tend to own these planes but for the small businesses that they pay to help deal with their travel. It appears the clarification would end up reducing federal revenue by less than $500,000. Current uncertainty about what the rules are in the present has meant that not much tax was ever collected.

There's no doubt the Republican-authored tax bill is designed to help businesses large and small by cutting their taxes, and that the net effect for personal taxes would benefit some in the middle class more than others. I think that was kind of the point of the whole "grow the economy by cutting corporate taxes" thing the Orange-Haired Wonder yammered ceaselessly about back in 2016.

It remains to be seen whether the provision would survive the Senate-House conference meetings that will be needed to hammer out differences between the two chambers' bills, assuming tax reform even makes it out of the Senate, given how smoothly the Republican majority seems to work with each other this session. ;-)

‘Private Jet Deduction’ in Tax Bill Isn’t Quite What It Seems

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"Politics is just show business for ugly people."

So when you were operating your restaurants is that how treated your vehicle expenses? Just claim everything, hope you don't get audited? No wonder we have to keep logbooks for business travel now.

An expense is deductible for tax when the expense is used to generate taxable income.

It doesn't matter if the income is from a corporate jet or from making widgets. The business creates income which is taxable, creates jobs where people pay tax, usually pays other taxes like property taxes, and licenses etc.

Give me your best sales pitch on why a business should not be tax deductible.

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Civilize the mind, but make savage the body.

- Chinese proverb

It has always been a deductible expense if it was used for business purposes. Not sure what you mean by 'now' in your 'challenge'.

Honestly, sounds like you don't know what you are talking about.

Greg

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If you are a Canuck that engages in gratuitous bashing of the US, you are probably on my Iggy List. So, save your self a bunch of typing a response unless you also feel the need to gratuitously bash me. If so, have fun.
"Don't underestimate Joe's ability to f___ things up" - Barack Obama, 2020

That is some strong reading comprehension from where I posted Please correct me if I’m wrong.

Honestly I don’t really care about the jet tax. I was just curious what people would come up with.

There are pretty catastrophic concerns for those with major medical issues with the tax proposal but this is just a minor distraction from that.

Just looking for some lite diversion from some real concerns.

Okay, I'll correct you. The challenge you posed in the subject line says to convince you 'now' is the right time to offer a tax deduction on private jet operating costs. I said that has always been deductible for any business or individual that uses a private jet (or any aircraft) in the course of doing business. Later, other posters corrected your interpretation of the change and it clearly isn't what you (or I) thought it was. So, no problem with my comprehension.

Your follow-on comments seem to indicate you were just looking for something to be pissed about pertaining to the tax reform proposal and you made a snarky remark about medical issues and the new proposal. Now, I think you are just a TDS infected lib looking for something to be pissed about and wonder why I ever wasted my time answering you in the first place.

Greg

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If you are a Canuck that engages in gratuitous bashing of the US, you are probably on my Iggy List. So, save your self a bunch of typing a response unless you also feel the need to gratuitously bash me. If so, have fun.
"Don't underestimate Joe's ability to f___ things up" - Barack Obama, 2020