AOPA Pilot Magazine - February 2012 - 17

3 Washington

Aircraft ‘luxury’ tax resurfaces in Washington state, not among governor’s recommendations
As Washington state lawmakers grappled in a special session with another huge budget shortfall, numerous revenue ideas have surfaced from various groups and organizations—including a luxury tax on aircraft—to bring the budget into balance. During the fall special session, Gov. Chris Gregoire presented lawmakers with a supplemental state budget containing “more than $2 billion in spending cuts, reductions to local revenue sharing and fund transfers to leave a $600 million reserve.” Gregoire’s three-phase fiscal plan does not include a tax on aircraft. However, a 10-percent luxury tax on GA aircraft was on the list of revenue proposals that have been reviewed, but not recommended at this time. In the current charged atmosphere of street protests and continued economic stagnation, local news coverage has speculated that while possible broad tax increases—such as a half-cent increase in the sales tax to ease the

shortfall—might ultimately pass, multiple grassroots organizations are still pushing targeted taxes on the wealthy. One such group, the Economic Policy Institute, is reported to be urging scrutiny of “luxury taxes” on yachts and private aircraft. “Private aircraft have, unfortunately, been caught up in a lot of symbolic rhetoric emanating out of recent protests and discussions regarding income inequality. Yet, the irony is that luxury tax proposals like these may take aim at so-called corporate fat cats, but at closer glance actually hit middle-income aircraft mechanics and other middle-class industry workers the hardest,” said Mark Kimberling, AOPA director of state legislative affairs. The special session concluded with more than $500 million in budget cuts, and no tax increases yet agreed upon. The legislature will continue to take aim at the remaining $1.5 billion shortfall during this year’s regular session.

More than just airports
Pilots have come to expect AOPA’s advocacy on behalf of America’s 5,300 public-use airports. As part of that effort we have recruited a corps of Airport Support Network volunteers nearly 2,500 strong to aid in that effort. But in recent years, AOPA has gone beyond the pavement to help champion very different landing places. Working with other allies in general aviation, our work on behalf of backcountry airstrips, seaplane access to a variety of waterways, and heliports has broadened AOPA’s horizons. It has given us the chance to apply what we have learned with traditional airports to other exciting public-use landing sites—places where many of our members fly. It is hard to appoint an ASN volunteer for a place where you cannot base an aircraft, but that doesn’t mean we don’t get plenty of help from pilots who care about accessing these locations. All we need are some local allies who are familiar with the site and passionate about protecting it to make a difference.
For more information on learning how to volunteer for AOPA, visit AOPA Online (www.aopa.org/asn).
AOPA PILOT • 17 • FEBRUARY 2012

“Luxury tax proposals may take aim at so-called corporate fat cats, but actually hit middle-income mechanics and others the hardest.”

http://www.aopa.org/asn

AOPA Pilot Magazine - February 2012

Table of Contents for the Digital Edition of AOPA Pilot Magazine - February 2012