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Billionaire talking about why he bought a jet



Tell me what you think

Jujupilote wrote:

Tell me what you think

You have 50+ million in winnings for a year and don’t want to pay taxes but want to enjoy having police guarding your expensive home, streets to drive on, fire department to keep you safe etc. so you leave that to the people who have much less than you – I think you are a big d#$k! (Peter, I hope you don’t sensor that). And talking about that openly and being proud of it, even a bigger one. There are people who appreciate airplanes for the technology they incorporate, for the possibilities they give you or for the fun you have with them and it would be so much nicer if they could enjoy a Gulfstream instead of this guy.

LSZH, LSZF

I think I feel like puking.

ESKC (Uppsala/Sundbro), Sweden

America vs Europe Vladimir… the old discussion. This is not a GA show, this is finance TV, big finance. These people do think different. He seems to be a successful business guy who turns over considerable sums of money. Therefore he wants to do asset protection as much that he can, so he decides to spend the cash that he would have to tax into a G550 which he uses on his global business. The only difference is that he talks about it. The other G550 and similar owners do the same but shut up about it. I know people even here who do stuff like that, not on that scale but there really is no difference in the attitude.

While technically this is GA, practically this guy is so far removed from all of us just by the type he is, not doing this because he likes airplanes or flying but because he can and wants to show off.. Much prefer folks like JT or HF who also fly big planes but are genuine enthusiasts who are more than happy to appear at an AOPA meet to share stories and suck up the atmosphere…

Airborne_Again wrote:

I think I feel like puking.

Why?

Last Edited by Mooney_Driver at 06 Feb 14:27
LSZH, Switzerland

Mooney_Driver wrote:

America vs Europe Vladimir

Yes, he would never get the 50m off his taxes in any country in Europe. Even if by any chance he could show that he needed the plane for “work”, he would still be able to deduct only a percentage of the price.

LSZH, LSZF

As long as it creates pilot jobs I think that is a good use of his money. ;) Much better than buying a yacht (though I doubt many people can deduct these as company expense even in the USA). But seriously, it is guys like this who are giving GA a bad image.

Vladimir wrote:

Yes, he would never get the 50m off his taxes in any country in Europe

I am not a betting man but I’d be quite sure if he wants it he can do it here as well. Maybe not as easily as in the old days but people like that have financial advisors who know all the tricks of the trade. The stricter tax laws are, the more effort goes into optimizing one’s tax bill.

And if so, then rather like this, after all the 50 Million he spent on that jet went into an American Business who in turn is taxed on their profit and the workers who make them are taxed by their income rather than hide it in the Virgin Islands or elsewhere.

LSZH, Switzerland

Its a UK based show presenting a caricature to create a reaction, apparently successfully, and not surprisingly given that in using the ‘private jet card’ it’s pushing the number one button of an envious society. The guy himself shows himself as a blowhard for playing their game to publicize himself.

In the real world, about 40% of total US tax revenues are paid by the highest earning 1%. About 70% of tax revenues are paid by the highest earning 10%. All those people work within the tax code to minimize their taxes, and their behavior is affected by it. This is not surprising given that the tax code is written with that intent.

This twit aside, I think the difference in the US is that (on the average) people accept that the tax system is created by design, with objectives, and that its perfectly fine to work within the system to minimize tax obligations – and that goes for everybody, because everybody is an equal participant. In Europe, the whole thing is much more shadowy, people moving money and dividing income between countries, a huge underground economy to avoid VAT etc. and meanwhile everybody mouths only what sounds socially correct, creating a cycle of suspicion and still more envy.

One can debate whether a tax code that is intended to influence behavior creates more problems and inefficiency than it solves, but I don’t think you can criticize anybody, even somebody with an unpleasant personality, for working within the intent of the tax code.

My question is why does the host of this mindless show wear such a silly pink tie? Maybe I’ve answered my own question

Last Edited by Silvaire at 06 Feb 15:16

You think the term ‘charity’ ever crosses the mind of this person? Tax deductible too, but somehow I don’t think that option is on the table.
“I don’t buy this to brag about having a jet, it enables me to connect to people” Yes, sure..
Yep Airborne Again, I puke with you.

Private UL field, Mallorca, Spain

C’mon guys!

We can be practical or emotional about this (and anywhere in the middle).

From the emotional point of view we could let envy or even ambition or judgement be our guide here and it is easy to exercise all three with a guy that exposes himself in this way. Some people could choose to give the $50M to a charity of his choice, which could even be your tax agency if you like to see it that way. Nothing is to say the guy did not give another $50M or whatever to a charity, it does not look like that but, still, it is his personal choice. I believe in freedom and I believe it is his entitlement to use his money as he pleases, as long as it is legal and he does not willingly hurt anyone.

From the practical point of view there is no regulation anywhere in the civilized world that says you are supposed to pay as many taxes as you can.
You could pay $50M taxes and you could debate endlessly as to how much of that really goes back into improving the life of people, or
You could use the $50M trading property with other rich people without much of it going into improving the life of third-party people, or
You could use the $50M buying an airplane, most of that goes straight into salaries of hundreds of people that worked to make that airplane a reality. Not only that wealth is instantaneously distributed amongst hundreds of families, generating subsequent wealth, but also a big part of the follow-on $3M a year running expenses goes into distributing that wealth amongst those of us who work in aviation: so much more so than if he had invested on real estate.

And as the icing on the cake, this $50M helps sustain GA as a living industry so the guys buying a C172 can aspire to an SR22, and those can aspire to a Cirrus JEt, then a Falcon X , and then a G550 (even if a used one 20 years after our guy purchased it for $50m) …helping push the industry along, a help none of us in this forum will feel against…

He wants to buy a Ferrari? Same thing! Good for him!

However, if he wants to purchase a $20M London appartment from his friend who owns Harrods and who paid $15M for it last year…oh well…

Antonio
LESB, Spain
47 Posts
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