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Georgia Denies Delta Tax Break After Airline Cuts Ties With NRA

posted by martyb on Saturday March 03 2018, @03:11AM   Printer-friendly
from the under-the-gun dept.

An Anonymous Coward writes:

Lawmakers in Georgia removed a $38 million tax exemption for jet fuel from tax-cut legislation on Thursday in a move that will punish Atlanta-based Delta Air Lines.

Republicans vowed to remove the exemption after the airline cut ties with the National Rifle Association (NRA).

Georgia's Lt. Gov. Casey Cagle (R), who is also running for governor, had threatened to kill any tax legislation that benefits Delta after the company's decision to end a discount program for NRA members.

[...] "I will kill any tax legislation that benefits @Delta unless the company changes its position and fully reinstates its relationship with @NRA," Angle tweeted earlier this week.

http://thehill.com/homenews/state-watch/376327-georgia-senate-passes-bill-that-effectively-punishes-delta-air-lines-for

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  • (Score: 5, Interesting) by Grishnakh on Saturday March 03 2018, @03:22AM (2 children)

    by Grishnakh (2831) on Saturday March 03 2018, @03:22AM (#646801)

    This means that costs for Delta will be higher than competing US airlines, and people will use those competitors more, and will go through airport hubs in other states more than Atlanta, so Georgia will get less revenue overall.

    However, I don't even know how this situation compares to other airlines and hubs in other states, so for all I know this could just be removing a somewhat unfair advantage that Delta had. And I really don't know how much the state is "losing" to this jet fuel sales tax and how this compares to extra revenues and taxes it gets from more people going through ATL. Generally I'm not a fan of corporate handouts like this, even though the idea is to recoup the "loss" through increased business, but if other states are offering similar deals then a state which doesn't is probably losing out.

    Finally, it'll be interesting to see how this affects upcoming elections in GA: will it piss off enough voters to sway them to the other side or not? GA is deep South, so I'm dubious, but there are a lot of Dem voters in Atlanta (the home of CNN), and it's not quite as red a state as neighboring Alabama I would think.

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  • (Score: 2) by krishnoid on Saturday March 03 2018, @03:54AM

    by krishnoid (1156) on Saturday March 03 2018, @03:54AM (#646817)

    Or maybe they'll move their headquarters to another Delta hub. I wish I could find the Futurama clip, but the joke goes that Atlanta has lots of businesses, such as the airport, the Coca-Cola bottling plant, ... the airport.

  • (Score: 1) by MachineShedFred on Sunday March 04 2018, @12:01AM

    by MachineShedFred (1656) on Sunday March 04 2018, @12:01AM (#647343)

    I would not be shocked even a little bit to learn that Illinois and Texas offer the same kind of deal to United and American for their hub operations in Chicago and Dallas, respectively.