Saturday, December 02, 2017
It's hard to imagine a greater extravagance than a private jet -- and a more exclusive group than the people rich enough to ride one.
Yet this tiny team of uber-wealthy high fliers has carved out a massive tax break for themselves at the expense of everyone else. And it's only going to get worse if the Trump-GOP tax bill becomes law. The Senate plans to vote on the bill Friday.
Given just how obscenely lavish private jet travel is, it might come as some surprise how much the rest of us flying coach subsidize the private jet set. Private jets get over a billion dollars in tax breaks every year -- while using 10 times more air traffic control resources than they actually pay for.
Our new report for the Institute for Policy Studies looks at how the private jet lobby keeps these obscene tax handouts to the ultra-rich in place.
According to the Center on Budget and Policy Priorities, middle-class families making between $40,000 and $50,000 a year will see a combined tax increase of about $5 billion.
Not coincidentally, households making over $1 million a year will see a tax decrease of about $6 billion.
Of the many losers in the tax bill are teachers who will no longer be able to deduct the money they spend out of pocket for their students' school supplies. And graduate students will see a massive tax increase as a result of a provision to treat their tuition waivers as ordinary income.
Put simply, this is a direct redistribution of wealth from ordinary Americans to the ultra-wealthy. The non-partisan Tax Policy Center calculated the Trump tax cuts will award 62% of the overall benefit to the top 1% of households.
This isn't just bad economics - it's morally reprehensible.
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