by George Patterson Nov 2, 2005 at 05:50 PM


wrote:

We'll take our toys elsewhere, you meanees! JG

They're pointing out that Illinois is losing more money in income taxes
due to
lost jobs than it's gaining on the taxes on aircraft. This is typical.
Several
years ago, Congress levied a luxury tax on the sale of new aircraft. They

rescinded it a year or so later when Beechcraft produced the cancellation
orders
they received and pointed out that the lost income tax revenue at their
company
alone was greater than the entire revenue from the luxury tax.

Illinois is facing the same situation."

The tax subsidies that GA manufacturers receive, and that airports get
from the FAA for capital and operating purposes, of course encourage
overproduction (and overusage) by distorting economic behaviour. (The
AOPA of course realizes that GA is very heavily subsidized - thus their
mostly absurd and disingenous arguments against user fees.) By
subsidizing a particular industry, other pieces of the economy will need
to be taxed at higher levels to compensate. Why not eliminate sales taxes
on tractors, to benefit farmers? More people would work for John Deere
then, and pay income taxes. How about eliminating sales taxes on
automobiles, to benefit the Big 4? They pay great wages and benefits, and
are a critical component of the national economy. They should be
subsidized.