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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: 0) by Anonymous Coward on Saturday March 03 2018, @02:40PM

    by Anonymous Coward on Saturday March 03 2018, @02:40PM (#647059)

    Entertainingly this won't hurt Delta. Their headquarters doesn't run on jet fuel. They, like all other airlines affected by this tax, simply won't fly as many planes to Atlanta and it'll lose its status as the largest air transport hub in the country. They'll just use a cheaper airport as a transport hub.

    The politicians in Georgia originally were wildly for the fuel tax breaks not to benefit Delta, but to attract more travel to Atlanta. While a large number of people would be flying in just to transfer to another plane flying elsewhere, it would still drive down ticket prices to Atlanta and more people would decide to travel there for other reasons. Conferences and such would choose to set up in Atlanta over other places, because the cost of flying there would've been significantly lower than to other places. The corporate benefit was secondary to the benefit of the state itself. It still makes the most economic sense to cut the jet fuel tax, but they've decided they'd rather pander to the NRA and its constituents than do what makes economic sense.