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Taxes Stifle Aviation

by John M. White |

In an interesting blog post by Philp Greenspun he discusses how the governor of Massachusetts, Deval Patrick, keeps aviation businesses nervous. In recent years he has proposed a new sales tax on aircraft and aircraft maintenance, and each year the legislature fails to pass the new tax. According to Mr. Greenspun, business with aircraft in Massachusetts keep drawing up plans to move their flight departments and employees to next door New Hampshire, which has no such taxes. Apparently these companies even consider exotic legal structures to avoid these proposed taxes.
In likening these proposals to FDR's "New Deal", he opines that these taxes actually reduce income to the state from taxes, not increase them. It comes to me as a surprise that after all of these years everyone wants to rewrite history. For example, Ronald Regan reduced taxes across the board which resulted in increased business activity, which brought about economic activity, and in the end resulted in more revenue to the government than ever. But if we listen to the Democrats they believe that lowering taxes results in lower economic activity, and their solution is to increase taxes. The real issue is this: Conservatives believe the pie continues to grow, while the Democrats see a finite pie. I live in Michigan, and the sad facts are that we have lost over 1 million residents and Detroit looks like a ghost town. Many of our flight departments are gone, taxes are up, schools are closing, and I remember a couple of years back at the State of the State speech our governor told us we would be "Blown Away" with her proposed new budget, taxes and all. Well, we were blown away, but not in a good way. I encourage you to read Philip's blog post "Deval Patrick keeps aviation businesses nervous". Let us know what you think by leaving a comment. Until next time keep your wings straight and level Hersch! JetAviator7 You can be in London at 10 o'clock and in New York at 10 o'clock. I have never found another way of being in two places at once. — Sir David Frost, Concorde regular.

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