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Georgia governor suspends fuel tax to avoid penalizing Delta

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bimjim
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Georgia governor suspends fuel tax to avoid penalizing Delta

Unread post by bimjim » Mon Jul 30, 2018

https://www.usatoday.com/story/travel/f ... 866002002/

Georgia governor suspends fuel tax to avoid penalizing Delta at Atlanta hub
Bart Jansen, USA TODAY
July 30, 2018

Georgia Gov. Nathan Deal signed an executive order Monday to stop collecting sales tax on jet fuel effective Wednesday, a tax the legislature kept in place this year to penalize Delta Air Lines.

The Georgia legislature debated dropping the 4% sales and use tax on jet fuel this year as part of a broader tax overhaul. But lawmakers kept the tax in place in retaliation for Delta halting a discount program with the National Rifle Association.

Deal noted that Georgia airports generate $62 billion in economic activity each year, with flights at Hartsfield-Jackson Atlanta International Airport supporting $11 billion in investment and 42,000 jobs across the state.

The 4% tax on jet fuel is among the highest in the country, behind only Illinois, California and Michigan, Deal said. Delta pays an estimated $40 million per year. Other states impose little or no tax on jet fuel, putting Georgia at a disadvantage behind Florida, New York, North Carolina and Texas, Deal said.

In his executive order, Deal said he had the authority to suspend collection of the tax.

Other states made offers – some jokingly, others sounding more serious – encouraging Delta to relocate its hub.

Delta CEO Ed Bastian thanked Deal for helping the airline with a hub at the busiest airport in the world for remaining competitive in the global economy.

"With 33,000 employees in Georgia, we are honored to call this our home state, and proud of the $58 billion in economic impact that Hartsfield-Jackson Atlanta International Airport creates statewide every year,” Bastian said. “The savings will allow us to invest additional flights into Georgia in the years to come. We look forward to continued growth of our service in Georgia and the job creation that will accompany it."

Allegiant Air also welcomed the decision.

"We appreciate the Governor’s support of commercial air service in the state, and his understanding of the important role it plays in developing the state’s economy," the airline said in a statement. "This decision encourages ultra-low-cost-carriers like Allegiant to continue providing affordable air travel for Georgia residents and those wishing to vacation in this great state.”

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Re: Georgia governor suspends fuel tax to avoid penalizing D

Unread post by bimjim » Mon Jul 30, 2018

Sooooooo... with a US government entity (Georgia) providing Delta (and other airlines) with what is effectively a DIRECT FUEL SUBSIDY, that whole State Department / Department of Transportation / FAA deal about denying US access to foreign airlines subsidised by THEIR OWN governments is all off now, right?

Or has the Republican Hypocracy / Elected Dictatorship / Fourth Reich now known as "the USA" FINALLY lost its marbles?

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