I love Corporate Jet Owners (10/12/2011)
Our president loves to talk about “fat-cats”, “the rich”, and “millionaires and billionaires” as he makes a case for the malaise in which we find ourselves. The parallelisms to Carter’s same pleas with America in 1979 are eerily similar, especially knowing such criticisms and populist arguments drove the economy further away from recovery. One of President Obama’s specific criticisms targets corporate jet owners and it is with this I must take exception. If driven by jealousy and envy it might seem appropriate to target those rich guys flying around in their jets, but personally my family and I depend on corporate jet owners to pay our bills.
Where the president misses the mark is he believes the government through Keynesian economics is best suited to transfer wealth and create economic growth, whereas I feel corporate jet owners are better suited. For instance, a jet must first be built and this is accomplished at plants like Gulfstream in Savannah, GA where 5,500 at all skill levels are employed. Additionally the supply chain, maintenance or even the multiplier effect of employees spending money locally all come from the purchase of corporate jets.
Once in the air the jets must be fueled, maintained, and managed. A hangar with a staff of three to five is typical and two pilots are needed. Thus, the “evil” corporate jet owner directly employs people to take care of his aircraft paying at least $350,000 in total salaries and the appropriate taxes. Further economic stimulus results from the hangar rent and property taxes. Operating the aircraft requires fuel; a truck driver delivers the fuel and companies sell the fuel to the corporate jet owner. Additionally, every gallon typically collects $0.244 in Federal Excise Tax, $0.05-$0.20 in state and local taxes, and another $0.10 in miscellaneous taxes. A corporate jet owner will consume 50k-200k gallons of fuel annually, generating tens of thousands of dollars in tax revenues. Each time the aircraft lands at an airport’s FBO (Fixed Base Operator) employees keep their job by servicing and fueling the aircraft, like an old-fashioned service station.
It is easy to be envious and jealous of those who have more, especially when you have never held a job or worked to start a company like our president, but under examination a different view comes to light; like a car a corporate jet is a tool to do business, to travel faster and more conveniently. In 2005 General Aviation contributed $150 billion to the economy, employed 1,250,000 million people and generated $53 billion in wages. As America’s single biggest corporate jet user, via the taxpayer’s pocketbook of Air Force One, I wish President Obama would rethink his populist arguments against corporate jet owners.
Recent Comments