Jets, Yachts & the #GOPTaxScam
The recent changes to the tax code are giving business executives a new perk: the opportunity to deduct the entirety of a corporate-jet purchase.
President Trump signed more than 100 changes to the U.S. tax code into law at the end of last year. Among them: The price of a new or used airplane purchased by a company can be a 100% write-off against its earnings.
Marcus Adolfsson, chief executive of online technology publisher Mobile Nations, bought a used Embraer Phenom 100 for just under $2 million at the end of December, right as the new tax law was going into effect. The rule allowing owners to deduct 100% on used equipment was retroactive to late September.
“The timing was impeccable,” he said of the full deduction he took for 2017.
The write-off does allow some buyers to splurge on bigger, faster jets that cost between $7 million and $10 million that they otherwise might not afford, Ms. Meiners-Levy said.
Jessica Mah, head of San Francisco accounting-software firm inDinero Inc., has been testing out potential planes in anticipation of buying next year. She has a budget of as much as $10 million, assuming she can get the 100% deduction.
“It goes from being completely unaffordable to being like, ‘Oh my God, not only is this not unaffordable but it’s kind of a no-brainer,’ ” she said.
Armed with a budget of between $4 million and $6 million, Mr. Catalano said he wouldn’t have even considered a new plane if not for the change in tax law.
“Would we have wanted it? Yes. Would we have done it? No.”
And not only that, but a new report from the Center for American Progress finds that the GOP tax scam 2.0 would hand a tax break to the wealthiest 1 percent big enough to buy more than 13,000 yachts every year:
Rep. Buchanan sits on the House committee that was charged with drafting the Tax Cuts and Jobs Act —a bill that gave him millions of dollars in special tax breaks. On the same day that he voted to pass the bill, Rep. Buchanan purchased a brand new 73-foot yacht with a base price of nearly $3 million.
Rather than focusing on boosting wages or reducing health care costs to help working families, the House majority is seeking to make expiring provisions in the TCJA permanent … In fact, in 2026 alone—the first year in which the new provisions would take effect—the proposed bill would provide more than $40.3 billion to the richest 1 percent of Americans. That’s enough to buy 13,476 new yachts every year.
The deficit-exploding GOP tax scam for the rich continues to enrich big corporations and the wealthiest few, while threatening the future of Medicare, Medicaid and Social Security. That’s why Democrats are fighting for real, bipartisan tax reform that creates jobs, reduces the deficit and is For The People.