Beefed Up IRS Scrutiny of Corporate Jet Travel Will Have Terrible Consequences
The Internal Revenue Service (IRS) has recently declared its intention to conduct more rigorous audits concerning the reported value of corporate CEOs’ travels on company planes. This move comes amid concerns that such trips are being systematically underreported as part of executives’ compensation packages. As the proprietor of a company catering to the needs of corporate jet and private aviation users, I am reminded of Ronald Reagan’s famous assertion that the “nine most terrifying words in the English language are: ‘I’m from the Government, and I’m here to help.’
” The ramifications of such heightened scrutiny are manifold and potentially severe. Not only is there the specter of unintended consequences looming, but the mere prospect of increased oversight from one of the most formidable government agencies is likely to cast a chilling effect on the private aviation industry. This, in turn, could precipitate a notable loss of jobs within the sector.
This isn’t the first time governmental rhetoric has impacted the private aviation industry. A seemingly innocuous remark by President Barack Obama in 2009, cautioning against the use of corporate jets for leisure, had a pronounced adverse effect, contributing to a downturn in the sector known as “Aviation’s Great Recession.” Should the IRS persist in targeting individuals based on their corporate jet usage, a similar negative reaction from both industry stakeholders and end-users is all but inevitable. It’s crucial to recognize that jobs within the aviation industry are not only numerous but also tend to offer above-average wages. Moreover, many positions within this sector do not necessarily require specialized skills. Indeed, many employees within my company began in roles such as customer service or aircraft maintenance and have since ascended to skilled positions, enjoying rewarding careers along the way.
At Threshold Aviation, we take particular pride in fostering an environment where advancement is not only possible but encouraged. Both my daughters have risen to significant roles within the company, breaking barriers in what has traditionally been a male-dominated industry. With my wife also playing a pivotal role in the business, Threshold Aviation has become both a familial and entrepreneurial endeavor.
Drawing from my experiences flying high-net-worth individuals across the globe, I can attest to the ceaseless nature of their work. Even during ostensibly leisurely trips, CEOs and business owners are invariably engaged in professional matters, often accompanied by personal assistants who ensure business continues uninterrupted. The efficiency afforded by private jet travel is indispensable to these high-performing individuals, enabling them to maximize productivity even during travel.
Consider the scenario of someone like Elon Musk. For an individual of his stature, the conventional rigmarole of renting cars, navigating airports, and enduring security checks represents not just a waste of time but a loss of valuable productivity. The societal cost of such inefficiency is considerable, given the substantial contributions such individuals make to innovation and economic growth.
Yet, despite the tangible benefits of private aviation, there persists a sentiment among certain factions that begrudge the success of others. This reflexive resentment, often observed among those on the political left, is regrettably short-sighted. Rather than seeking to impede the success of others, it would be far more beneficial for society if such success were celebrated and emulated.
As someone who employs over a hundred individuals in my Chino, California operation, I am acutely aware of the potential consequences should the IRS continue down this misguided path. It is not the wealthy who will suffer most, but rather the hardworking individuals who form the backbone of the private aviation industry, including my own dedicated employees. Therefore, it is imperative that we resist the urge to penalize success and instead foster an environment where achievement is encouraged and rewarded.
