Congress is debating legislation that would help ultra-wealthy jet owners dodge state and local taxes — while ordinary Americans struggle with high gas and grocery prices.
A provision tucked into an air-safety bill would block tax officials from accessing flight data used to track private jets, according to Politico reporting.
The data allows state and local tax collectors to identify jet owners avoiding taxes by registering their planes in Montana and Delaware, which charge minimal sales and use taxes.
“These are extremely wealthy individuals who are not paying their taxes. This is a tool that allows my county to collect what’s owed to them. The bill should not be providing people ways to get around the law.”
Democratic California Rep. Laura Friedman, who represents part of Los Angeles, said the move helps the wealthy dodge obligations.
California charges a sales tax plus a 1% annual property tax on private jets. If the owner of 1,000 private jets valued at $3.5 billion registers them in Delaware instead of Los Angeles County, the county loses out on $35 million in property taxes, according to Politico.
Republicans argue flight data should be used only to improve air safety, not to enforce property taxes.
Democrats are taking the “stick it to the rich” angle.
The provision affects about 0.00343% of the American population — private jet owners — while most voters worry about inflation and cost-of-living pressures.
Republican lawmakers pushing the loophole in a midterm election year risk looking out of touch with the economic concerns facing 99% of voters.
