Tags: Buffett | NetJets | Tax | Break

WSJ: Buffett's NetJets Wins Jet-Fee Waiver From Congress

Wednesday, 25 Apr 2012 08:12 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Legendary investor Warren Buffett's unit NetJets, a private aircraft company that operates like a timeshare for planes for rich clients, has spent $1 million lobbying for tax breaks in recent years despite Buffett's calls for tax hikes on the company's very clients — the wealthy, The Wall Street Journal reports.

NetJets and the government are at odds over whether a certain tax applies to the company.

Commercial airline passengers pay a ticket tax of 7.5 percent of the ticket, although NetJets operates like a time-share, meaning the users buy into the aircraft so the debate centers around whether or not those users have to pay the ticket tax since they aren't actually buying tickets.

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

The Federal Aviation Administration and Internal Revenue Service had disagreed over whether or not such companies should be considered commercial or noncommercial.

The lobbying campaign on Capitol Hill was "intended to get a clarification so that the tax code is congruent," says Bob Tanner, the company's vice president for government affairs, the Journal reports.

"This was not to get a tax cut."

Buffett grabbed headlines and touched nerves recently when he said that the rich don't pay enough in taxes, arguing middle class taxpayers fork over a greater percentage of their income to Uncle Sam than do the wealthy, who largely report investment income, which is taxed less.

President Barack Obama has proposed that those taking in $1 million or more should pay 30 percent in taxes, a policy known as the Buffett Rule in homage to the legendary investor championing tax hikes.

The proposal failed to muster support in the Senate recently, and some say the tax hike is a politically charged tool designed to stir up class warfare in an election year boost President Obama's chances for re-election.

"Democrats are drawn like moths to the flame to class warfare arguments. They do it over and over and over again," says GOP pollster Whit Ayres, according to the Christian Science Monitor.

"It always gets them in the game, but it never gets them across the finish line."

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here


© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved