Private jets were seen on the tarmac at Friedman Memorial Airport ahead of a business conference on July 5, 2022 in Sun Valley, Idaho. (Photo: Kevin Dietsch/Getty Images)
A provision of the budget law that President Donald Trump signed last week will leave taxpayers to “pick up the tab for the private jet industry and billionaire high flyers.”
The Republican budget measure that U.S. President Donald Trump signed into law late last week contains a provision that analysts say will allow private jet owners to write off the full cost of their aircraft in the first year of purchase, a boon to the ultra-rich that comes as millions of people are set to lose healthcare under the same legislation.
FlyUSA, a private aviation provider, gushed in a blog post that with final passage of the unpopular budget reconciliation package, “business jet ownership has never looked more fiscally attractive or more fun to explain to your accountant.”
The law, crafted by congressional Republicans and approved with only GOP support, permanently restores a major corporate tax break known as 100% bonus depreciation, which allows businesses to deduct the costs of certain assets in the first year of purchase rather than writing them off over time.
Forbesnoted that the bonus depreciation policy “applies to a slew of qualified, physical business expenses which depreciate over time, such as machinery and company cars, but the policy is often associated with big-ticket luxury items, such as private aircraft, and its institution last decade led to a boom in jet sales.”
“Trump and congressional Republicans have certainly delivered for the billionaire class.”
Chuck Collins, director of the Program on Inequality at the Institute for Policy Studies, called bonus depreciation “a massive tax break for billionaires and centi-millionaires that use the most polluting form of transportation on the planet.”
“A corporation purchasing a $50 million private jet could potentially deduct the entire $50 million from their taxes in the year of the purchase, rather than spreading the deduction over many years,” Collins wrote. “This amounts to a massive taxpayer subsidy, as ordinary taxpayers pick up the tab for the private jet industry and billionaire high flyers.”
“Subsidizing more private jets on a warming planet is reckless and indefensible,” he added.
The National Business Aviation Association, a lobbying group for the private aviation industry, celebrated passage of the Republican legislation, specifically welcoming the bonus depreciation policy as “effective for incentivizing aircraft purchase.” (The Institute for Taxation and Economic Policy argues that “depreciation tax breaks have never been shown to encourage more capital investment.”)
Meanwhile, communities across the United States are bracing for the law’s deep cuts to Medicaid and federal nutrition assistance, which are expected to impose damaging strains on state budgets and strip food benefits and health coverage from millions of low-income Americans.
“Trump and congressional Republicans have certainly delivered for the billionaire class,” said Robert Weissman, co-president of Public Citizen. “This is certainly one of the cruelest bills in American history, backtracking on the country’s painfully slow history of expanding healthcare coverage and, equally remarkably, taking food away from the hungry.”
“That’s a lot of needless suffering just to make the richest Americans richer,” he added.
Donald Trump urges you to be a Climate Science denier like him. He says that he makes millions and millions for destroying the planet, Burn, Baby, Burn and Flood, Baby, Flood.Nigel Farage urges you to ignore facts and reality and be a climate science denier like him. He says that Reform UK has received millions and millions from the fossil fuel industry to promote climate denial and destroy the planet.Orcas discuss Donald Trump and the killer apes’ concept of democracy. Front Orca warns that Trump is crashing his country’s economy and that everything he does he does for the fantastically wealthy.
The mega-rich are using private jets like taxis, warn climate scientists who tracked flights to calculate the planet-warming gases they release.
The scientists worked out that the carbon dioxide emissions, which contribute to climate change, rose by 46% between 2019 and 2023.
Researchers traced all private flights globally, including summer weekend trips to Ibiza, Spain and travel to the Fifa World Cup and the UN climate conference in Dubai.
Flying in a private jet for a single hour can release more carbon dioxide into the atmosphere than the average person produces in a year, according to the research team.
“There are a lot of people using these aircraft as taxis, where you cover whatever distance by aircraft simply because it’s more convenient,” Professor Stefan Gossling, from Sweden’s Linnaeus University, who led the research, said.
“If somebody’s flight emits in one hour as much as an average human being emits in a year – just to watch a soccer game – then perhaps it shows those people think they are outside the standards that we have as a global community.”
U.S. President Donald Trump smiles at House Ways and Means Committee Chairman Rep. Kevin Brady (R-Texas) after speaking about the passage of tax cut legislation at the White House in Washington, D.C. on December 20, 2017. (Photo: Saul Loeb/AFP via Getty Images)
In legislatures, the courts, and our executive offices, we have a system rigged in favor of the ultra-rich, rigged by everything from acts of Congress and judicial rulings to IRS budgets and audit policies.
By all appearances, former U.S. President Donald Trump has cut a sweet deal with a dozen or two of America’s richest billionaires: Finance his campaign and he’ll keep their federal taxes super low—or even lower them—once he’s sitting back in the White House.
How much do billionaires like this deal? This much: In April, hedge fund billionaire John Paulsen held a Palm Beach fundraiser for Trump that brought in $50.5 million. Immediately after Trump’s late May conviction on 34 felony counts in Manhattan, Timothy Mellon, the grandson of the classic plutocrat Andrew Mellon, ponied up $50 million. Miriam Adelson, the billionaire widow of Las Vegas kingpin Sheldon Adelson, appears eager to kick in as much as $100 million.
This past spring, meanwhile, billionaires Elon Musk and David Sacks reportedly held a secret dinner party for Trump, with attendees including the illustrious deep pockets Peter Thiel, Rupert Murdoch, and Michael Milken.
The rich themselves have actually become more brazen about avoiding taxes. Just try to stop us, they seem to be saying.
America’s billionaires clearly see politics as one route to ensuring they pay as little as possible at tax time. But they don’t just make their presence felt at election time. America’s rich have their thumbs firmly on the scale of all three branches of government. In legislatures, the courts, and our executive offices, we have a system rigged in favor of the ultra-rich, rigged by everything from acts of Congress and judicial rulings to IRS budgets and audit policies.
Some of this rigging we can all easily see. The dividends and long-term capital gains of the ultra-rich have for decades faced a maximum tax rate barely half the maximum rate applicable to other forms of income. And the investment income of the rich, unlike the paychecks of working people, faces no Social Security tax.
In 2017, the first year of the Trump presidency, intense lobbying efforts helped rich business owners to a special tax rate for their business income. In 2018 alone, according to ProPublica, that special rate translated into a $67 million gift to Mike Bloomberg, whose personal wealth now reportedly exceeds $100 billion.
But these glaring privileges the rich enjoy at tax time only tell part of the billionaire tax story. Other parts get precious little attention. In 2004, for instance, lawmakers in Congress enacted a penalty for the failure to disclose potentially abusive tax avoidance transactions on tax returns. The penalty on the surface looked substantial: 75% of the tax sought to be avoided. But Congress capped the penalty at $100,000, a move that turned the penalty into a minor nuisance for billionaires seeking to avoid millions of dollars in taxes.
In our current rich people-friendly tax climate, IRS staff who want to do the right thing face tough going. Recently, for example, one former IRS staffer, Michael Welu, went public with his concerns that the IRS itself has both official and unofficial policies that end up treating audited rich taxpayers much more gently than small business owners.
Welu found the upper management of the IRS division tasked with auditing the super rich—and the corporations they run—distinctly uninterested in investigating America’s richest and their “most egregious, ridiculous schemes” for avoiding taxes.
IRS officials like Michael Welu do occasionally speak out. But only tax wonks truly have any real sense of how much obscure tax code penalties and IRS audit policies favor the rich. And most of those tax wonks work for the rich.
The rich themselves have actually become more brazen about avoiding taxes. Just try to stop us, they seem to be saying.
Take the recently decided Supreme Court case, Moore v. United States. Working through an array of right-wing organizations, the conservative mover-and-shaker Leonard Leo attempted to use a challenge to an obscure one-time tax as a vehicle to preempt Congress from ever taxing the wealth or unrealized gains of the ultra-rich. Ultimately, the court decided the case without ruling on whether the rich can be taxed on their wealth or unrealized gains. But the opinions that four of the nine justices handed down made it clear that they stand prepared to do the billionaire bidding should a direct challenge to a tax on the wealth or unrealized gains of billionaires come before them.
Billionaires now have at least three Supreme Court justices firmly in their pockets. Reporting by ProPublica has revealed the massive gifts that have been flowing from Harlan Crow and other billionaires to Justice Clarence Thomas as well as the generous gifts that billionaire Paul Singer has been sending Justice Samuel Alito’s way. Justice Neil Gorsuch has had his entire career, including his appointment to the court, funded by the billionaire Philip Anschutz.
Those three justices, along with Justice Amy Coney-Barret, have now made it patently obvious they will not allow billionaires to be taxed on their unrealized gains or their wealth. Does anyone really think the billionaires won’t have the crucial, majority-making fifth vote from Justice Brett Kavanaugh when they need it?
Republican members of Congress are showing even less shame than our Supreme Court justices. Last year, these GOP lawmakers held the country hostage in negotiations to increase the country’s debt limit. Their price for agreeing to raise the debt limit, thereby avoiding a default on the country’s debt? They demanded—and won—a reduction in a scheduled IRS budget increase that would been used to increase enforcement moves against rich taxpayers.
The purported motive for this legislative hostage taking—“concern” over the federal deficit—made for an absurd justification. The proposed increase in the IRS budget would have been recovered, several times over, through increased tax collections. The IRS budget reductions the Republican lawmakers extracted will, in fact, only increase the federal deficit. But those reductions will serve a political purpose. They’ll protect the GOP’s richest patrons from tax enforcement.
The mainstream media, to no one’s surprise, did a miserable job of exposing this Republican dishonesty in the debt limit negotiations. But at one point in our recent past a courageous soul did emerge to expose the rot in our tax system. What happened? The ultra-rich and their henchmen in Congress make sure that this soul faced a punishment far more severe than any punishment ever meted out to those few rich Americans who actually get caught evading their taxes due.
That courageous soul, Charles Littlejohn, worked as an IRS contractor. He leaked tax return information related to Trump and America’s billionaires to TheNew York Times and ProPublica. ProPublica used that leaked information to write over 50 stories about billionaire tax avoidance, embarrassing and angering many of our richest in the process. Two of them even brought lawsuits, one against the IRS and the other against Littlejohn’s employer.
Ultimately, Littlejohn pled guilty to one count of unauthorized tax return information disclosure, a crime that carries a recommended sentence of four to 10 months. But 25 Republican members of Congress, undoubtedly at the behest of their billionaire patrons, wrote the judge in the case and urged the harshest possible sentence of five years. The judge obliged, stating in her sentencing remarks that Littlejohn posed a graver threat to democracy than the January 6 rioters. As tax law professor Reuven Avi-Yonah has noted, Littlejohn is now serving a sentence far harsher than any imposed on rich Americans convicted of tax evasion.
Littlejohn’s extreme sentence did not reflect the one single count of unauthorized tax return information disclosure he pled guilty to. That sentence reflects his “crime” of exposing the tax avoidance of the billionaire class.
Try this thought experiment: Imagine if Littlejohn had released the return information of 1,000 or so taxpayers with modest incomes to ProPublica. Imagine that ProPublica had then publicly detailed all the tip income that servers and bartenders among these taxpayers had failed to report and all the social meals that small business owners in the sample had claimed as business expenses. If Littlejohn had then pled to one count of unauthorized disclosure, would 25 members of Congress have intervened? Would the judge have imposed a sentence over six times the maximum recommended in federal sentencing guidelines?
Doesn’t it become dangerous to society when the punishment for a crime depends on who the victim happens to be?
We are now living that danger. Our billionaires sit firmly in control. And they will do whatever it takes to make sure they never pay tax at an appropriate level—even if that means locking a human being up for a preposterously long time just to send a message.
Carrying blood-red ribbons to represent the crucial red lines already crossed by Cop26 negotiations, hundreds of representatives of global civil society walked out of the convention centre in Glasgow on the final morning of the summit in protest.
The audience at the People’s Plenary in the conference blue zone heard speakers condemn the legitimacy and ambition of the 12-day summit before walking out to join protesters gathered on the streets beyond the security fencing.
“Cop26 is a performance,” the Indigenous activist Ta’Kaiya Blaney of the Tla A’min Nation told the meeting before the walkout. “It is an illusion constructed to save the capitalist economy rooted in resource extraction and colonialism. I didn’t come here to fix the agenda – I came here to disrupt it.”
A recent analysis of the lifestyles of 20 billionaires found that each produced an average of over 8,000 tonnes of carbon dioxide: 3,500 times their fair share in a world committed to no more than 1.5C of heating. The major causes are their jets and yachts. A superyacht alone, kept on permanent standby, as some billionaires’ boats are, generates around 7,000 tonnes of CO2 a year.
…
I’ve come to believe that the most important of all environmental measures are wealth taxes. Preventing systemic environmental collapse means driving extreme wealth to extinction. It is not humanity as a whole that the planet cannot afford. It’s the ultra-rich.
The fossil fuel industry benefits from subsidies of $11m every minute, according to analysis by the International Monetary Fund.
The IMF found the production and burning of coal, oil and gas was subsidised by $5.9tn in 2020, with not a single country pricing all its fuels sufficiently to reflect their full supply and environmental costs. Experts said the subsidies were “adding fuel to the fire” of the climate crisis, at a time when rapid reductions in carbon emissions were urgently needed.
