Today, President Obama signed a Congressional compromise plan to raise the $14.3 trillion debt ceiling. The bill did not incorporate a user fee tax on general aviation or make depreciation changes.
"While the AEA is breathing a sigh of relief that the debt ceiling bill finally has been passed without the inclusion of language calling for user fees and the elimination of the bonus depreciation program for aircraft and avionics purchases, we certainly are cautious that lawmakers may try to include that language yet this fall," said Paula Derks, AEA president.
As part of the passage of raising the nation's $14.3 trillion debt ceiling, the bill creates a special joint committee of Congress to recommend further deficit reductions totaling $1.5 trillion or more. Congress is required to vote on the committee's suggested reforms to the tax code and entitlement programs by the end of this year.
"We definitely have not heard the last of a user fee scheme or the prospect of eliminating the popular tax depreciation plan for buyers of new aircraft and avionics," Derks explained. "This means the entire general aviation community needs to be on a constant vigil and ready to react to those proposed fees and/or new taxes. Again, our community will need to rally together and continue to educate our elected officials on the importance of this industry to our nation's economy."