A big reason is the "bonus depreciation" that was drafted, passed and signed by a Congress dominated by democrats and Obama as President. The bonus depreciation has allowed companies to depreciate or write off 100% of assets purchased during these years. Of course this accelerated depreciation for tax purposes will reverse in future years. This is one of the prime reasons why big corporations are showing tax losses and book profits.
So Obama is responsible for the tax deductions for corporate jet purchases that he is railing against now! What a hypocrite! Why aren't the Republicans pointing this out?
Obama signed the American Recovery and Reinvestment Act, better known as the stimulus act, in February 2009. In September 2010, Obama signed H.R. 5927, the Small Business Lending Fund Act. Both pieces of legislation included tax breaks to help businesses buy their own planes.
In September 2010, Congress passed and the president signed the Small Business Lending Fund Act. Included in this legislation was “bonus depreciation” to encourage businesses to make major purchases, including aircrafts.
The bonus depreciation was going to last for a year. Obama championed it. It got passed into law nine short months ago. So he hasn’t gotten through the law he introduced, championed and got passed. Another mistake by Obamanomics? This was thought to be a boon for creating jobs. Instead it is turning out to be just like "cash for clunkers".
I can think of no time in history where businesses were allowed to write off 100% of all of their fixed asset purchases. Our president and his economic advisers, who have almost all jumped off of the Titanic like administration that Obama is leading, appear to be just throwing darts out there hoping that one of them will improve the economic conditions.When Obama touted taking away tax breaks for corporate jet owners as a way to reduce the long term spending problem, he demonstrates one of two things. 1. He is ignorant of tax law (not surprising) or 2. He is lying and simply is trying to play his favorite campaign game of lets hate the rich evil republicans.The answer is probably both.
So we can truly say he is Kerrylike. Obama was for corporate jet tax deductions before he was against them.
Obama is truly the worst President there has been in my lifetime.