Senate Bill Gives Tax Breaks For Private Jets

Senate Bill Gives Tax Breaks For Private Jets Promo Image

The latest version of the Republicans' tax reform bill in the Senate contains a measure exempting owners of private jets from paying tax on them.

Health and Human Services Secretary Tom Price was forced to resign in September over his use of private jets at taxpayer expense, The Hill reported.

Part of the bill outlined the services that would be exempt from taxes: "Applicable services include support activities related to the aircraft itself, such as its storage, maintenance, and fueling, and those related to its operation, such as the hiring and training of pilots and crew, as well as administrative services such as scheduling, flight planning, weather forecasting, obtaining insurance, and establishing and complying with safety standards."

News of the private jet exemption came the same day as House Republicans passed their version of tax reform by 227 votes to 205.

President Donald Trump paid a visit to Congress prior to the vote to urge Republicans to get behind the plan.

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"I love you," he said at a GOP meeting, according to the Los Angeles Times. "Go vote!"

The successful vote was welcomed by House Speaker Paul Ryan.

"Passing this bill is the single biggest thing we can do to grow the economy, restore opportunity and help these middle-income families that are struggling," said Ryan.

Only 13 GOP members voted against the bill, many of whom came from regions of the country that are expected to be hit hardest under the current plan.

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In the Senate, passing tax reform could be more challenging. An analysis released on Nov. 16 by Congress' bipartisan tax experts found that the Senate bill would result in an increase in taxes for some of the poorest Americans. The Joint Committee on Taxation revealed that those earning incomes between $10,000 and $30,000 would pay more taxes by 2021, and by 2023, people with incomes of less than $10,000 would also pay more.

By contrast, all other income brackets, including people earning more than $1 million annually, would get a tax cut.

The Senate bill has several differences from the plan approved by the House. If the Republicans manage to get it passed, a process of reconciling the House and Senate plans will occur.

GOP Sen. Ron Johnson has already said he opposes the plan, arguing it doesn't do enough for small businesses. Republicans can only afford to lose two votes in the Senate if all Democrats oppose the bill.

Sources: The Hill, Los Angeles Times / Featured Image: Ricky Harris/The White House/Flickr via Wikimedia Commons / Embedded Images: Michael Vadon/Flickr via Wikimedia Commons, Office of Speaker Paul D. Ryan/Facebook via Wikimedia Commons

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