The President is serious of cutting the deficit, although there has been no tangible proof of such. (like any spending cuts) He says the deficit is a serious problem. To demonstrate his determination to cut it and buff up his reputation as a fiscal titan, he has proposed to change the depreciation schedule on corporate jets by making it seven years rather than the current five years. Of course, this does not really increase any nominal taxes over the life of the asset as the full cost is depreciated over time but it does affect the time value of the money on the payment of the taxes. Hence, revenue pick up over current law.
Mr. Obama mentioned the corporate jet break six times yesterday in his press conference. Now that is bold, powerful and deep thinking. If Congress would just make that change the whole mess would be over. No? I see, such a change is projected to put only $3 billion into the Treasury in the next 10 years. To put that is prospective; the deficit this year will be roughly $1.65 trillion or about $4.5 billion a day. So this change would be less than a day of deficit reduction but over a ten-year period or some 3650 days more or less. If the problem were not so serious, this would be comical.