Delta Doesn’t Need The Tax Break
Suddenly, Democrats are defending an obscene government tax subsidy for a corporation that doesn’t actually need the tax break, because a Republican wants to punish the firm for ideological noncompliance.
You’re getting played.
I’d like you all to consider the possibility that, in light of the major tax changes at the federal level this year, that state government might have been finally prepared to fight the fuel subsidy definitively — that the move was already in the bag, and that the NRA thing provided needed political cover. Delta is providing a political rationale for doing the right thing.
Consider also that Delta signed a 20-year operating agreement with the city of Atlanta in 2016, and isn’t going anywhere.
Before the Delta-NRA thing, Democrats wanted to kill the tax benefit on fuel sold at the airport. Those taxes benefit Clayton County and would have a significant impact on the county’s schools and policing. And Republican support for ending the fuel subsidy existed as well — it’s exactly the sort of crony capitalism the Tea Party wanted government to stop.
Delta has been making a play for the fuel subsidy because … well, why not? There’s no penalty for working the ref in 21st century America. Any corporation that can whisper the word “jobs” is going to ask for anything and everything it can. Delta had pre-tax income of $5.5 billion last year. A $50 million tax benefit is … nice. It’s nice. It’s a rounding error on $41.2 billion in revenue, but it’s nice. It is not, and never would have been, a deciding factor for Delta to bail on Atlanta.
Corporate subsidies are corrupting, and we’re seeing what that looks like right now.
The state has no duty to respect Delta with a corporate freebie. And it shouldn’t.
Delta, of course, has a perfect right — and I would argue a responsibility — to disassociate itself from support for gun violence, which is basically the NRA’s position right now. It’s not obligated to give the NRA a special break on flights.
Conservatives are caterwauling about it as though being a gun owner is some kind of equivalent to being born black, or gay, or female — a protected class due special treatment by society. Tim Echols decried Delta’s lack of commitment to “diversity.” as though ideological positions are something corporations — or anyone else! — must respect in a democracy. By doing so, though, it helps the NRA’s core membership feel like they can make a claim of oppression (!) and turn the arguments of people of color or women or the LGBT community on its head. It seems clever, until you realize it equates being disrespected as a gun owner with the far more damaging treatment of people due legitimate protection.
Cagle has made a habit of loud appeals to the base in his run for governor so far, starting early with specious attacks on Decatur for being a “sanctuary city.” It’s not, but that’s beside the point. Decatur is full of white yuppies who eat toast with avocado and commute to work on bikes and hate Confederate monuments; throwing sticks at them looks good to downstate conservatives. This is more of the same.
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Personally, I don’t think Delta or any other carrier should get a tax break. Especially, after the Trump MASSIVE Tax giveaway to corporations and the rich.
Of course Delta should get their crony tax break. That’s free market economics. Don’t believe it? Just ask Pope.
Shhhhh…..be very quiet, we’re hunting Republicans!
again, sarcasm
Not a fan of the tax break, but even less of a fan of political retaliation and pandering.
And I thought Cagle was going to be the reasonable Republican in the mix of candidates. Allen Peake’s support of Clay Tippins has interested me…
Kemp ups the pandering ante:
“”Instead of giving millions of our hard-earned tax dollars to billion-dollar businesses that want to disarm law-abiding citizens,” said Kemp, “we should give a tax break to hardworking Georgians who want to protect their families and loved ones from criminal aliens, terrorists and gang members.”
https://politics.myajc.com/blog/politics/georgia-gov-candidate-calls-for-gun-sales-tax-break-after-delta-rift/zSNR7RouJCzNcq6Uu1946O/?utm_source=newspaper&utm_medium=email&utm_campaign=3980110&ecmp=newspaper_email&
I’m with you mostly George except that I haven’t noticed any rumblings to reduce corporate give-aways. Trimming government and treating corporations in a non-preferential way is a good line for the stump that’s mostly ignored when laws get cut. I don’t think Cagle et al would have threatened Delta’s subsidy without the NRA pretext as cover and even then only because it’s what looks to be a tough election year.
To me it’s more worrisome that the state can threaten to pull a subsidy based purely on politics. The subsidy loss won’t hurt Delta much, although I’m sure they’d prefer to keep it, but for other businesses state sugar is a big deal.
It’s disheartening that every issue is diluted just by claiming it is ‘Political’. Delta never said their reason to drop a tiny annual discount was political, or religious, or a business decision. We have allowed “It’s Political” too much power. Want to end discussion, just play the ‘Partisan Politics’ card and game over. When the going gets tough politicians simply whine, “They are member of Party A and attacking me because I am Party B.” Boohoo. Childish.
All news media is just as guilty by constantly promoting the petty, partisan side of squabbles over facts and relevance on events, issues and legislation. But finding facts are tough, take time, and need staff to read legislation, law, etc. Opinions over which party wins the days’ points fast, cheap and require no accountability. They are a wasteful use of journalists time and their audience eyeballs.
I’m going to make a few assumptions, some of which I’ll admit are not great, but you have to start somewhere.
1) Per Delta, they serve 180,000,000 customers a year.
2) Per the NRA, there are 5,000,000 NRA members
3) Per Wiki, there were 308,000,000 citizens in 2010
4) If we assume the portion of Delta’s patrons that are NRA members is proportional to their portion of the US population (not the worst assumption), that’s 2.9 million NRA passengers.
5) Per transitstats.bts.gov, The average price for a domestic flight was $360 in 2016. (Questionable assumption here) This is the average cost of flights for NRA members.
6) The discount for NRA members was between 2% and 10%. We’ll pretend it’s 5%. 5% of $360 is $18. $18 x 2.9 million = $52.2 million.
If my math is right, and ther’s no reason to think it is, Delta still comes out ahead, even without the good press.
The discounts were only to attend annual meetings. How many of the alleged 5M or 2.9M members actually attend the annual meeting and fly Delta? adjust accordingly.
@NoParty4Me: “The discounts were only to attend annual meetings.”
Well, today I learned.
From what I could quickly find on Google, attendance seems to go between 80-85,000 members. The NRA Annual Meeting page says that 60% come from 200+ miles away, so I can guess that at least 40% probably didn’t fly. I’m going to pretend that 50,000 members flew and chose Delta to fly just to put a number on this, and I’ll even pretend that everyone that flew got 10%
50,000 * 10% * $360 = $1,800,000.
Even in that absurd case, Delta obviously wouldn’t come out ahead. Well, not if they were counting on that $40 million tax break.
Thanks CalmlyBallistic, nice work!
We shouldn’t be doling out company-specific tax breaks and our public servants shouldn’t be using their positions of power to force private companies to support a political organization. Cagle is showing where his loyalty is, in case there was any question.
Good Lord Mr. Chidi,
Neither side wanted to be exposed for what they supported in the past…. That doesn’t fit the current political narrative…. Now both will be convinced that your future residence will be in Hades…. Good Job!
Conservatives most likely booked dream vacations when Delta dropped this support:
https://www.reuters.com/article/us-usa-shakespeare-delta-air-idUSKBN193018
“Delta Air Lines Inc and Bank of America Corp pulled financial support on Sunday for the Shakespeare in the Park production of “Julius Caesar” in New York over its portrayal of the assassinated ancient Roman leader that resembles U.S. President Donald Trump. ”
“Delta said in a statement on Sunday that the Public Theater’s “artistic and creative direction crossed the line on the standards of good taste” and that it was ending its four-year run as official airline of the Public Theater.”
Get out your Cliff’s Notes children for a quick lesson about Shakespeare’s JC. Spoiler alert, it doesn’t promote assassination as a fix.
“If Shakespeare had ended the play with the title character’s brutal and public death, there would be some justification for claims that Julius Caesar glorifies violence against political leaders. But it doesn’t—Shakespeare’s Rome, much like the historical Rome, descends into civil war and bloodshed, and one by one the conspirators themselves are captured, murdered, or driven to suicide. As the Public Theatre pointed out, “Shakespeare’s play, and our production, make the opposite point: those who attempt to defend democracy by undemocratic means pay a terrible price and destroy the very thing they are fighting to save.” (https://thewalrus.ca/why-shakespeares-julius-caesar-makes-conservatives-mad/)
Methinks the Lt. Guv protest too much.
George,
While we can have an honest argument about tax abatement for large corporations, what should be the main issue of concern is the Lt. Governor blatantly using his position of power to extort a corporation to give financial benefit to a group of supporters/donors.
Think about this, what would the reaction be if a County Commission Chair blocked a zoning request or a liquor license application for a business unless they guaranteed a discount to members of the local Masonic lodge? Of which, the chairman just HAPPENS to be a member?
Get ready for Governor Stacy