WaPo Gives Dems More Pinocchios On Tax Bill
The Washington Post has awarded three more Democrats with some major “Pinocchios” for claiming that the Republican tax bill gives tax breaks for private jets.
Democratic National Committee Chair Tom Perez, Oregon Sen. Jeff Merkley and California Sen. Kamala Harris all referenced the alleged tax break for private planes in recent tweets.
The Washington Post awarded Harris three Pinocchios for referencing the “private jet tax break” and awarded Merkley and Perez four Pinocchios for suggesting that education and health funding were cut to finance the “tax break.”
As WaPo explains, the provision in the bill about private planes is actually a regulatory clarification for the IRS. Private jets are exempt from excise taxes but the IRS had a gray area regarding taxation on private jet management companies. The GOP bill now explicitly exempts those companies from the excise tax.
“While the cause is well-intended, the characterization of the excise tax clause as a tax break is misguided,” WaPo explains. “The provision provides regulatory clarity on a tax that has never successfully been imposed on private jet management companies. In short, the companies can’t receive a break on taxes that were never collected.”