Georgia lawmakers yank tax break for Delta after airline cuts ties with NRA

rlongnt

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Georgia lawmakers yank tax break for Delta after airline cuts ties with NRA

http://www.foxnews.com/politics/201...r-delta-after-airline-cuts-ties-with-nra.html

Georgia lawmakers voted to nix a tax benefit for Atlanta-based Delta as part of a broader tax package approved Thursday, following the airline's decision to sever ties with the National Rifle Association.

The bill -- which includes a sweeping income tax cut -- cleared the state House on an overwhelming 135-24 vote, after being approved in the state Senate on a 44-10 vote. It now heads to the governor's desk.

The final version dropped an earlier amendment that would have renewed a jet fuel tax exemption worth $50 million that was taken off the books in 2015.

“Businesses have every legal right to make their own decisions, but the Republican majority in our state legislature also has every right to govern guided by our principles,” Lt. Gov. Casey Cagle, who very publicly threatened to pull the airline tax break earlier this week, said in a statement.

Republican Gov. Nathan Deal, serving his last year in office, said he plans to sign the tax package, though he initially pushed for the airline tax break.

Deal said he would still pursue a jet fuel tax exemption separately.

The rejection of the tax break for now, though, marked a swift rebuke from state lawmakers, who had been weighing the restoration of the benefit until this week. It was originally pitched as an “airline tax break,” rather than one that would only benefit Delta.

But in the wake of the Atlanta-based airline’s decision to end its relationship with the NRA, Cagle, who is running to succeed Deal in November, warned that he would block any legislation that could prove to be beneficial to them.

“I will kill any tax legislation that benefits @Delta unless the company changes its position and fully reinstates its relationship with the @NRA,” Cagle, who heads the Georgia State Senate, tweeted on Monday. “Corporations cannot attack conservatives and expect us not to fight back.”

GEORGIA'S LIEUTENANT GOV BLASTS DELTA FOR CUTTING TIES WITH NRA; WARNS HE WILL BLOCK LEGISLATION FAVORING AIRLINE

Last weekend, Delta, which employs 33,000 Georgians, announced its decision to cut ties with the gun rights group, after the Parkland, Fla., high school shooting on Feb. 14 that left 17 dead. Delta announced that it would end the NRA’s contract for “discounted rates through our group travel program.”

“Delta’s decision reflects the airline’s neutral status in the current national debate over gun control amid recent school shootings,” read the statement posted to the Delta News Hub. “Out of respect for our customers and employees on both sides, Delta has taken action to refrain from entering this debate and focus on its business. Delta continues to support the 2nd Amendment.”

Delta tweeted last Saturday that they “will be requesting that the NRA remove our information from their website.”

Delta added: “Delta supports all of its customers but will not support organizations on any side of any highly charged political issue that divides our nation.”

Connecticut Democratic Gov. Dannel Malloy and New York Democratic Gov. Andrew Cuomo both have invited Delta to move its headquarters to their states in the midst of the company’s disagreement with the legislature.

United Airlines also notified the NRA that it would no longer offer a discounted rate for the NRA’s annual meeting.

The Associated Press contributed to this report.
 

donner

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Frankly, it could play out in a number of ways. As was stated above, lots of places are using this as a chance to court Delta. It will be interesting to see if they play that up. Nothing like losing 30K jobs over a political stunt.

Also, there has been some discussion that this move could affect Amazon's chances of building their second HQ in atlanta, which was a finalist.

How the NRA fight between Delta and Georgia could roil Atlanta's Amazon headquarters bid
 

donner

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Would the members here condone a state like Washington deciding to 'punish' Amazon because it failed to sever ties with the NRA by ending it's tax incentives?

i edited the post to try to make clear what i'm trying to ask. Do we support states punishing businesses for having ties to the NRA?
 
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dennishoddy

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Would the members here condone a state like Washington deciding to not extend a tax incentive to Amazon because it failed to sever ties with the NRA?
I personally think tax incentives to companies to relocate should not be allowed.
Yeah, I know they weigh the overall initial break vs long term sales/tax revenues, but it doesn't always work out that way.
My home town courted Huffy Bicycle years ago with a huge tax break, built them a 10 acre manufacturing facility that was state of the art to their specs giving them tax and utility incentives.
They moved in, made one hell of a contribution at barely above minimum wage. Gave away a hundred bicycles or so a year to local charities with huge fanfare, and when the time ran out on the incentives, they shut the doors and moved out within a few months. (the current rules for shutting down large facilities was not in effect at that time.)
After the facility sat unused for many years, it was basically given to a grocery distribution company just to get someone in there.
I'm sure there are huge success stories, but there are also failures.
 

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