As a young man, I started out washing aircraft, and eventually I started an aircraft finders business, where I brokered aircraft.
Occasionally, we would sell aircraft to people who would lease them back to the flight school, and use them as a business tax right off, only so they could afford an airplane.
Most of these people never made much if any money on the aircraft they bought for leaseback, but at least they were able to buy an airplane, and afforded it due to the tax savings.
Indeed, had those individuals not bought those airplanes, and not leased them back, then there wouldn't be new aircraft for student pilots to learn how to fly.
Some say that the depreciation schedules and tax laws surrounding general aviation are not fair, and they say that it is a rich person's tax dodge.
But is that really a fair assessment? In knowing all that I do about general aviation, and business aircraft, I'd say it really isn't.
I would also submit to you that the reason general aviation aircraft cost so much is because of all the lawsuits, and over regulation in this sector.
If we got rid of all the lawyers suing over finished products liability after each and every aircraft accident, from 'ambulance chasing' type attorneys, then indeed we could lower the cost of the aircraft, help the industry, and there would be no need to allow for accelerated depreciation schedules.
Merely because the aircraft wouldn't cost as much, and they would be worth more after a few years if the owner decided to sell that aircraft.
Attacking general aviation is really a ploy, and it is throwing a wedge between the rich and poor.
Looks to me as if it is all about podium pushing political rhetoric, dog and pony shows, and class warfare in the midst of a presidential re-election campaign.
Last month there was a very interesting article in Aviation Maintenance Technology published on June 30, 2011 titled; "General Aviation Manufacturers And Aerospace Workers Respond To President Obama's Attack On Industry," and the article discussed the outrage and anger of the "General Aviation Manufacturers Association (GAMA) and the International Association of Machinists and Aerospace Workers (IAMAW)," as they are livid over the Obama Administration's comments about the need to change tax law and depreciation schedules for general aviation aircraft purchases, apparently to help shore up the Federal Government's budget challenges.
The article stated that the changes would "..
negatively impact the entire general aviation industry, and Obama's comments were ill-informed criticism of corporate jets and business aviation, and while it may appear to some as good politics, the reality is that it hurts one of the leading manufacturing and export industries in the United States.
This kind of criticism has also led to the layoff of over 20,000 IAM members.
" Now then, we can't blame anyone for being upset with what happened, nor should any apology be accepted from any backtracking politician for making such disparaging comments about general aviation.
It is unfortunate that at this juncture we would single out general aviation tax depreciation schedules, as our government is wildly subsidizing, supporting, and funding alternative energy projects which are highly unreliable.
Sometimes politics is a rotten way to run such a great civilization, and it's definitely a horrible way to run general aviation.
Indeed I hope you will please consider all this and think on it.