Washington, DC, April 10, 2013 – Today, the Administration released its long-awaited Fiscal Year 2014 Budget which serves as a guideline for the Administration’s spending and policy initiatives.  While more detail will to follow, unfortunately, the budget continues to promote policies that hurt general aviation and fail to lay the foundation for growth in aviation manufacturing and general aviation jobs.  As in recent budget proposals, GAMA opposes the Administration’s scheme for a $100 per flight fee and a change in the depreciation schedule for general aviation aircraft to close a politically generated and non-existent loophole.

"Unfortunately, the President’s budget is more of the same for general aviation: more fees, more taxes, and more attacks on the industry," said Pete Bunce, the President and CEO of the General Aviation Manufacturers Association (GAMA).  Bunce added that, “General aviation manufacturers are a key contributor to exports and economic growth.  The Administration needs to focus on substantive policies and refrain from divisive rhetoric that undermines this important industry."

GAMA has stridently opposed efforts to implement aviation user fees because they will negatively impact aviation safety and hurt small businesses.  Last week, 223 Members of the U.S. House of Representatives sent a GAMA supported letter opposing the $100 per flight fee.  Additionally, the association has consistently objected to efforts to single out the industry and its depreciation schedule.  GAMA is particularly puzzled by the Administration’s fixation with the general aviation depreciation schedule, which is not a loophole but rather longstanding tax policy that is similar to other items that are depreciated like cars, computers, and farm equipment.

"Rather than focus on these tired ideas, we remain hopeful that the Administration will engage industry and Congress to invest and improve our aviation infrastructure, particularly air traffic modernization and NextGen," said Bunce.  "We stand ready to work with FAA in making key investment and operational decisions that will enhance safety while better managing scarce resources."