NetJets Sues IRS Over $642.7M Tax Bill - Thanks OBAMA...

[glasspilot]

Even if it was Bush who enacted it, Obama is aggressively enforcing it. Certainly won't help Netjets if they are forced to pay it now...

So you don't think the President should enforce the laws of the land?

Seems to me the Foxies get awful upset with that premise when it comes to immigration. Does Fox and the GOP post a list of which laws should be enforced and which should be overlooked?

PS, could the OP please change the title of this thread to "Thanks Bush"?

 

[mtnrunner]

Rookie move

This is the act of an attorney turned CEO who has seriously miscalculated. The attorney is making Obama's and the airline's case that the rich, who own their private jet, refuse to pay "their fair share" of the aviation infrastructure.

The attorney armed Obama, ATA, and every airline CEO and lobbiest with the ammo they need. I don't know many in congress that could defend NetJets position for a "free ride." The taxes were implemented under Bush 43 and seen as very favorable to fractional, even more so than Part 135, and very favorable vs what the airlines pay. It's a very pro General Aviation tax scheme.

The airlines have been arguing for years for landing/user fees over passenger or "ticket tax." Obama has been aggressively advocating for landing/user fees. I think the attorney just cost more pilots their job short and long term.

Big miscalculation in my opinion. It's a rookie CEO with no real experience picking a fight with Obama, Congress, IRS, Labor, and OEM's. At least the negotiating tactic is consistent in all cases.

 

[kf4amu]

This whole topic is proof that taxing the rich is bad for the economy and the middle class. I hope none of us lose our jobs because of this tax.

9-9-9 FairTax is the way to go to increase GDP 12% , create 6 million jobs, reverse the trade deficit, increase wages, and solve the unemployment problem we have today.

Eliminate 70,000 pages of tax code, thereby saving entire forests worth of trees and Ink.

Dude we could also just print a ******************** ton of fiat currency, devalue the dollar, and do the same thing! GDP would skyrocket, jobs would totally increase (ya know, making our roads pretty and other "shovel ready" stuff), our products would be so cheap we would sell them if we had any productive capacity left, wages would skyrocket on a nominal basis, and everyone would have jobs!!!



Except we'd all still be broke.

 

[gunfyter]

No it's not the same thing. When you print fiat currency, people buy gold instead of investing in businesses. You get hyperinflation and economic collapse

Where taxes are places in the economy has a similar effect on the velocity of money, as where you place impedance in an electrical circuit has on electron flow.

Taxes are impedance to money flow (velocity) as resistors pare impedance to amperage ((electron flow). An economic circuit is analyzed with the same mathematics (2nd order differential equations) as the electric circuit.

Money supply M, times the Velocity of Money V, = GDP. Your solution of printing more Money increases M, but does nothing for V. Our problem is Not M... We have Quadrupled the supply of money since 2008. The problem is the money isn't moving! What can we control that will reduce the impedance to money flow and increase it's velocity?

The answer is Taxes... That is what has to change. We need the overabundant supply of money we already have to Flow. That's what 9-9-9 FaIRTAX does, reduces total impedance while collecting the same revenues. and saving pilot jobs by getting rid of this tax on our business.

No you can't do the same thing by printing money. That's what we have been doing.

 

[Hung Start]

So you don't think the President should enforce the laws of the land?

The laws didn't matter to him before. Announced he WILL NOT enforce the Marriage Law, and Immigration Law.

Hung

 

[johnsonrod]

Politics aside, the fact is that Netjets is being aggressively pursued by the IRS for a huge tax bill. This could also impact other fractionals.

How about we discuss the potential impact instead of whether people should enforce laws?

 

[Hung Start]

Fair enough.
It used to be that the ticket tax was only billed when it was a true charter, company held a 135 certificate, and held out to the public. If a person owned the aircraft, or owned a percentage of an aircraft, we did not collect any tax. Looks that might have changed. Or, if you decided you wanted to shield yourself from any kind of liability, and decide to go with a "jet card" type of program, I can see where the tax would be imposed. Am I reading this correctly?

Hung

 

[jtf]

Have the other fracs been paying the tax or is the IRS coming after them also? Or is the IRS selectively enforcing this?

 

[152SIC]

No it's not the same thing. When you print fiat currency, people buy gold instead of investing in businesses. You get hyperinflation and economic collapse

Where taxes are places in the economy has a similar effect on the velocity of money, as where you place impedance in an electrical circuit has on electron flow.

Taxes are impedance to money flow (velocity) as resistors pare impedance to amperage ((electron flow). An economic circuit is analyzed with the same mathematics (2nd order differential equations) as the electric circuit.

Money supply M, times the Velocity of Money V, = GDP. Your solution of printing more Money increases M, but does nothing for V. Our problem is Not M... We have Quadrupled the supply of money since 2008. The problem is the money isn't moving! What can we control that will reduce the impedance to money flow and increase it's velocity?

The answer is Taxes... That is what has to change. We need the overabundant supply of money we already have to Flow. That's what 9-9-9 FaIRTAX does, reduces total impedance while collecting the same revenues. and saving pilot jobs by getting rid of this tax on our business.

No you can't do the same thing by printing money. That's what we have been doing.

I think that you meant that the monetary base has increased since 2008. Not the supply of money as measured by either M1 or M2.

Monetary base: http://research.stlouisfed.org/fred2/series/BASE?cid=124

M2: http://research.stlouisfed.org/fred2/series/M2?cid=29

Increasing the money supply will be through our national lending institutions. Unfortunately we now pay those institutions for their excess reserves held at the Fed. http://en.wikipedia.org/wiki/Excess_reserves

If the interest payed on excess reserves was reversed and the institutions were required to pay interest on their excess reserves, you would see the money supply increase quickly. This would also increase the velocity of money by increasing the workforce.

The 9-9-9 plan is an idea Cain got from playing The Sims too often. Those were the original default tax rates for that game. It is a highly regressive tax plan that would benefit the wealthy.

 

[gunfyter]

Totally false that it is regressive or that it came from the sims. It came from calculations on the percentage of GDP that would be taxable on sales, personal income and business transactions. The total comes to $33 trillion. 7% of $33 trillion is what it takes to be revenue neutral compared to current revenues. 7-7-7 was bumped up to 9-9-9 to account for a "poverty grant", which eliminates income tax on families up to the poverty level. Don't listen to the know nothings at the huffing ton post.

I can take any series circuit and increase the current flow by rearranging the resistors into a parallel circuit. We can increase the velocity of money by rearranging the impedance (taxes)... And thereby increase GDP. When you increase GDP you create jobs. That is the ONLY way to increase jobs. Taxing the rich only redistributes the wealth, it doesn't increase it or GDP. Or create a single job because the required wealth has not been created.

It's all in the scoring reports and tables.
http://hermancain.com/999