Statement: No Time to Target Tax Breaks to Wealthy Jet Owners

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HARRISBURG, PA (January 24, 2012) — Pennsylvania Budget and Policy Center Director Sharon Ward issued the following statement in response to House Bill 1100, which would exempt the sale of private and corporate aircraft from Pennsylvania's sales and use tax. The legislation was the focus of a press conference held by supporters today.

"After cutting education and health care for children, Pennsylvania should not be creating new tax breaks targeted to the wealthy.

“The jets loophole is just another special interest tax break that will drain millions from investments that create jobs: in schools, colleges and infrastructure.  It would have to create 6,500 aircraft jobs in Pennsylvania—double the current number of jobs in related industries—just to break even.

“This is one of a number of unaffordable tax breaks the state House is now considering. In an era of tight budgets, tax breaks should be held to the same level of scrutiny as spending programs, but they are not. The Jets Loophole will make Pennsylvania’s tax system even more unfair, divert funds from education and health care, and fail to deliver on the lofty claims of its proponents.”

Important Facts about the Proposed Jets Loophole:

  • Pennsylvania’s competitor states do not exempt the purchase of jets from sales tax. The industry is lobbying states to reduce aircraft taxes, with plane owners pocketing the difference. The public, inevitably, is the big loser.
  • Instead of a blanket tax exemption for jet sales, the commonwealth should devise a more comprehensive approach to investing in transportation infrastructure, including regional airports.
  • Learn more about the problems with creating this Jets Loophole in a December policy brief from PBPC at http://pennbpc.org/jets-loophole.