[Cross-posted at my blog, American Liberty]
Obama has called for taxing corporate jet owners to help offset government spending and balance the federal budget. It is just the latest example of the president’s economic illiteracy.
A business airplane is just another tool for making a company more efficient and profitable, just like computers, software, telecommunications equipment, copiers and other machines. No one would suggest that the economy would be better off without these items; and the more they are taxed, the more their use would be discouraged, slowing the growth of companies and the economy. Why should airplanes be any different?
- Average annual revenue growth on a market-cap weighted basis was 116 % higher
- Average annual earnings growth was 434% higher
- Total stock and dividend growth was 252% higher
- Total share price growth was 156% higher
- 95% of the S & P 500 companies in Business Week’s “50 Most Innovative Companies”
- 90% of the S & P 500 companies in Business Week’s “25 Best Customer Service companies”
- 86% of Fortune magazines “100 Best Places to Work”
- 95% of the S & P 500 companies in Fortune’s “World’s Most Admired Companies”
- 90% of S & P 500 companies in CRO (corporate responsibility) magazine’s “100 Best Corporate Citizens”
If you collect that tax for the next 5,000 years — that is not a typo — it would equal the new debt Obama racked up last year alone. To put it another way, if we had levied this tax at the time of John the Baptist and collected it every year since — first in shekels, then in dollars — we would have 500 years to go before we could offset half of the debt added by Obama last year alone.
Obama’s other favorite debt reduction refrain is canceling an oil company tax break. Well, if you collect that oil tax and the corporate jet tax for the next 50 years, you will not yet have offset Obama’s deficit spending for February 2011.