Millionaires and billionaires will enjoy their private flights much more this winter season following the GOP’s tax reform plan. The recently passed tax bill will provide the biggest wins for America’s richest citizens, according to expert analysis. Some of these benefits will happen gradually or in subtle ways. Others, however, are much more obvious.
One of these examples is the way the bill solidifies existing exemptions for owners and leasers of private jets. Not surprisingly, it is commercial passengers who will continue to foot the bill for the one percent’s expensive habits.
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Despite our shared reliance on critical resources like the Air Traffic Control (ATC) system, commercial airlines pay 95% of all taxes to the Federal Aviation Administration’s trust fund, totaling $14.85 billion of the $15 billion collected last year. Meanwhile, private and corporate jets use 15.6% of ATC resources but pay only 1.55% of all taxes into the trust fund. In effect, regular commercial fliers are subsidizing private jets to the tune of more than $1 billion a year.
Opinion| Stephen Prince: I own a private plane – I don’t need a tax break to fly one.
Get the Think newsletter. SUBSCRIBE Millionaires and billionaires will enjoy their private flights much more this winter season following the GOP’s tax reform plan. The recently passed tax bill will provide the biggest wins for America’s richest citizens, according to expert analysis. Some of these benefits will happen gradually or in subtle ways.