Samantha Melamed says Tom Corbett is trying to play us for a bunch of suckers:
No one loves an earnest attempt at spin more than us. Which is why we really got a kick out of the headline on today’s press release from Pennsylvania Rep. Peter J. Daley II on House Bill 1100: “Daley stands up for job creation.” It’s a hell of a headline. Whether it fits the, er, bill is another matter.
The bill in question excludes from sales tax fixed-wing aircraft, parts, repair and maintenance. Detractors say it amounts to a tax break for corporate jets and the über-wealthy who purchase them, (as CP reported back in January), Daley argues “would open the door for the aviation industry to set up shop at Pennsylvania’s airports, with businesses that service aircraft, sell parts, perform routine inspections and even build and sell aircraft. We are looking at the creation of thousands of jobs right here in Pennsylvania.”
If passed, the legislation had better live up to that promise in a big way. After all, “it would have to create 6,500 aircraft jobs in Pennsylvania—double the current number of jobs in related industries—just to break even,” warns Sharon Ward, director of the Pennsylvania Budget and Policy Center.
Pennsylvania used to have Piper aircraft based here. Piper aircraft made all types of airplanes. In fact, they still make them but not in PA. The Phildelphia region had airplane production as well. Due to the tax policies in Pennsylvania, the production of airplanes is simply not possible.
Which sounds better. A $9.00 hourly wage or a $15-25 hourly wage. There are great blue collar jobs in aviation and Pennsylvania is missing the boat or should I say the plane.
We have seen growth with helicopter production in Chester County with Sikorsky Aircraft. Back in 2009, the helicopter industry was opened for business. Pennsylvania needs good paying private sector jobs. A bigger government is not the answer.
The writer of the news article above is not well informed. She should check her facts before she starts writing. Pennsylvanias economy needs some major work. We need jobs here and we need them now. The sales tax issue is all about jobs and the ability to produce airplanes. It is not about saving a business aircraft operator a few dollars.
Spoken like a private jet industry lobbyist.
Interesting that this is listed under "Tom Corbett". Last time I checked he is an executive, not a legislator. The primary sponsor of this bill is Peter Daley, Democrat from western Pennsylvania. This bill has 26 co-sponsors from both sides of the political spectrum. All of these folks see that by eliminating these taxes, we will entice companies to come to PA. Look at the neighboring states of NY and OH to see what the effect will be here. WV is a perfect example used on other websites as an example of what bad tax policy can do to a state. They repealed sales tax, but still tax aircraft, corporate included, at the personal property tax level, which is different from almost any other state (hence the minimal aviation activity in WV).
There are three prominent schools who train Aviation Technicians in the state. One of whom, PIA, has seen up to 95% of aviation job grads leave the state to get those good jobs (averaging $50k per year starting with benefits). If we keep the tax, it will become a smaller and smaller amount each year as these aircraft, maintenance facilities, and jobs leave.
The author of the article is incorrect as well in assuming that 6,500 jobs need to be created to make up for the same revenue. This only assumes that PA income tax is collected on these new jobs, not ancillary income from crew stays, or any other taxes from residents who are currently leaving the state.
These private, corporate, and commercial aircraft are being sold and maintained, just less and less in PA. Heck, the airplanes owned by the state of PA are maintained in NJ. Do we want a slice of the pie or not?
Mr. Geeting, we should not all suffer because of people's envy. Private small aircraft can be affordable too. That was Bill Piper's dream.