[Congressional Record Volume 159, Number 29 (Thursday, February 28, 2013)]
[Senate]
[Pages S991-S992]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         CORPORATE JET LOOPHOLE

  Mr. MORAN. Madam President, as we all know, our country faces 
tremendous fiscal challenges. We expect our President, our leaders, and 
those of us in Congress to engage in a meaningful and honest discussion 
about debt, deficits, and the direction of our Nation. Unfortunately, I 
think what Americans--certainly Kansans--are hearing from the White 
House and from some prominent Democrats is a relentless focus on 
political gimmicks to solve our problems.
  An example of one of those is the so-called corporate jet loophole. 
We are focused on that instead of a serious plan to address the looming 
sequestration cuts that threaten to harm our economy. The President's 
fixation on corporate jets stands in direct contrast with his supposed 
desire to help the aviation industry and create jobs. Ending the 
accelerated depreciation schedule for general aviation aircraft will 
send hundreds if not thousands of hard-working Kansans straight to the 
unemployment line. My State is blessed with a significant number of 
people who work in the aviation industry.
  This rhetoric is dangerous. It is certainly hypocritical. The 5-year 
depreciation schedule has been law for nearly a quarter of a century, 
and it was not created for the benefit of the ``rich'' or ``wealthy'' 
but was created for the benefit of the 1.2 million Americans who make a 
living building and servicing these airplanes. Accelerated depreciation 
helps spur manufacturing and creates jobs.
  I am disappointed that the President continues his endless campaign 
to score political points rather than to work toward a real solution to 
solve our Nation's fiscal challenges. When 23 million Americans are 
looking for work, our government's first priority should be to create 
an environment where business can grow and hire additional workers. 
Increasing taxes on corporate jets and other general aviation aircraft 
sales will only further stifle economic recovery and result in 
additional job losses.
  According to our Joint Committee on Taxation, closing the 
``loophole,''

[[Page S992]]

would only generate $3 billion in revenue over the next 10 years, less 
than the government borrows on a single day. Kansans in particular, 
along with the rest of rural America, would be negatively impacted by 
any change in the depreciation schedules for noncommercial aircraft. 
Farmers use general aviation aircraft to dust their crops, and rural 
small business owners rely on these planes to connect their businesses 
with the rest of the world. It makes no sense for a commercial jumbo 
jet liner to be depreciated on the same schedule as a farmer's air 
tractor.
  This distinction between general and commercial aircraft is neither a 
loophole nor unique, as the 5-year depreciation schedule is applicable 
to many other depreciable transportation assets, such as cars and 
trucks. If the President wants Congress to review the depreciation 
periods associated with certain assets, then why single out one 
specific industry instead of taking a comprehensive approach? Because 
attacking corporate jets is apparently a nice political sound bite. But 
political sound bites don't solve our problems.
  Because of the expiration of the Bush tax cuts on January 1 of this 
year, President Obama received $600 billion in tax hikes to help fund 
his vision for government expansion. Yet less than 2 months later he is 
back on the campaign stump asking American taxpayers for more.
  While the amount of revenue our government currently brings in is 
near historical averages, spending remains well above those historical 
norms and is projected to escalate dramatically in the years ahead. It 
is long past time to address the real problem with meaningful spending 
reductions, and every moment spent talking about corporate jet 
loopholes is a wasted moment.
  Americans expect leadership from their elected officials here in 
Washington, DC. If we fail to take action now and leave it for a future 
President and a future Congress to solve, we will reduce the 
opportunities of the next generation to experience the country we know 
and love, and we will diminish the chance that every American has the 
chance to pursue the American dream.
  Madam President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. GRASSLEY. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GRASSLEY. I ask unanimous consent to speak for 15 minutes as if 
in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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