Georgia passes tax bill punishing Delta for NRA split

[demmiblue]

Source: Axios

Georgia lawmakers on Thursday approved a tax bill that is stripped of a jet fuel tax break, likely in retaliation for Delta Air Lines' decision to end its discount program with the NRA, reports the AP. The bill will now go to the desk of Republican Gov. Nathan Deal, who has said he will "sign it in whatever form it passed."

Why it matters: Georgia’s Lt. Gov. Casey Cagle pledged to kill the tax break unless Delta fully reinstates its relationship with the NRA, tweeting on Monday, "Corporations cannot attack conservatives and expect us not to fight back." Barring a veto from Gov. Deal, Cagle will have succeeded in punishing the city of Atlanta's No. 1 employer — a highly unusual and partisan move that is sure to receive backlash.

Read more: https://www.axios.com/georgia-votes-to-punish-delta-for-nra-split-c7439cd1-feff-4a8f-b890-359956cc63f7.html?utm_source=twitter&utm_medium=social&utm_campaign=organic&utm_content=1100&utm_term=politics

---

More info:

Georgia Senate approves tax bill, snubbing Delta in NRA feud

Pro-gun Georgia lawmakers scored a political victory Thursday over Delta Air Lines, making good on Republican threats to deny the company a hefty tax break after it cut ties with the National Rifle Association in the wake of the deadly shooting at a Florida high school.

The state House and Senate within hours of each other passed a sweeping tax bill that Republicans had amended to strip out a sales tax exemption on jet fuel. Atlanta-based Delta would have been the prime beneficiary of the tax break, which would have been worth an estimated $38 million.

The political battle at the Georgia Capitol was the latest in a renewed debate over gun control and school safety after the Feb. 14 shooting. GOP Gov. Nathan Deal criticized the Delta controversy as an "unbecoming squabble" but said he would sign the broader tax measure in whatever form it passed.

The Senate's presiding officer is Republican Lt. Gov. Casey Cagle, who vowed Monday to stop any tax break that would benefit Delta — sparking a showdown at the state Capitol between gun-rights supporters and one of Georgia's largest private employers.

http://abcnews.go.com/US/wireStory/georgia-senate-approves-tax-bill-snubbing-delta-nra-53446838

[cstanleytech]

1. If I was Delta I would commence looking for a new hub and corporate headquarters.

[SoCalMusicLover]

2. Not Gonna Happen

Delta IS Atlanta. They can't just relocate their hub. Far costlier than any tax credit they're losing. Unfortunately, this is one case where the victim just has to take it, no chance for retaliation.

[Weed Man]

8. Delta has to eat the loss and move

Or Delta will also face a massive backlash for not moving out of Georgia.

On a personal note: Delta is a very nice airline, a bit expensive, but nice.

[ananda]

9. I like Delta. It's my favorite airline.

Virgin is nice too.

Frontier sucks.

[Weed Man]

41. Frontier is my hometown airline

It is an embarrassment really. They had good service back then. Now it acts like Spirit, literally charging you for everything and to boot the only US based airline (as far as I know) not offering Internet service. Needless i try to avoid it while they blare at my email account with $20 fares... to boring cities nearby.

Im glad i flew on Southwest recently. Fine service but had to get the Internet through Paypal because their credit card portal wasnt working.

[Calista241]

36. Why would they face backlash for not moving out of Georgia?

Moving in the near to medium term is impossible for Delta.

They have long term contracts for gates at the airport. And no other airport is big enough and has enough open gates for Delta to purchase.

Their entire business model is around moving people to and through Atlanta. Atlanta’s airport is one of the nicest and most efficient airports in the world.

You think Delta is willing to throw all that away for a measly fuel state tax credit?

[leftieNanner]

20. I don't know about that

United Airlines was a San Francisco company and they moved their HQ to Chicago.

Once again, The Stupid rears its ugly head. Well done, Georgia!

[SoCalMusicLover]

31. Georgia Does Need Delta More Than Other Way Around

I still highly doubt that Delta would move their hub, but I would be absolutely thrilled if they did.

The VINDICTIVE ASSHOLES who just took away Delta's tax credit, are counting on Delta doing nothing. It would be absolutely fucking fantastic if Delta announced they were exploring other cities as their new main hub, and planned on leaving Atlanta once their contract expired.

Anybody know if Delta has a contract with the Atlanta airport, and if so, when it expires?

[leftieNanner]

32. Good Point

Being an asshole for these GOPers seems to be more of a feature than a bug. May they come to sow what they reap.

[quartz007]

62. For profit businesses should stay out of politics

Delta was wrong to offer NRA member discounts,
and it was wrong again to take them away based on political winds.

For Profit businesses should treat every customer equal. AT&T gives me an employer based 30% discount for cell phone service. That is a wrong policy. They should treat every customer equal.

[tblue37]

73. Amazon should announce that they won't consider Atlanta now for their new HQ, since

they can't trust (Republican) politicians in Georgia.

Delta maybe can't move, but other businesses can smack these fools upside the head, loudly and publicly.

[spooky3]

42. If it is this difficult to move, I'm surprised that legislators ever considered offering a tax break

in the first place.

[DBoon]

12. Start moving what operations they can out of state

maybe put out feelers to other states willing to subsidize their relocation

[appalachiablue]

67. DE, VA, NY have already expressed interest.

[bluestarone]

19. maybe just raise fares blaming the repubs!

Then say when the repubs come to their senses, they will go back to original fares

[TranssexualKaren]

3. Isnt this unconstitutional?

Since the U.S. constitution specifically prohibits bills of attainder, that is a bill which sanctions a person or entity rather than a specific behavior or action, taken together with their public statements that they want to get Delta?

What do you think?

[unblock]

17. as i understand it, they *didn't* pass a big tax break for jet fuel.

the proposed tax break was really just a typical, corrupt payout to a local company that effectively lobbies politicians.

from a business perspective, delta messed up the timing; they really should have waited until georgia passed the tax bill, including the big break, before saying anything.

in any event, delta doesn't have any particular constitutional right to legislators passing a tax break that vastly disproportionately would have benefited them over any other georgia citizen or business.


that's not to say the politicians involved weren't horrible corrupt themselves, it's a ludicrous shakedown. but delta can't really use the courts to fight back.

i expect delta to fight back by shifting its campaign contributions to punish a few selected politicians.

[TranssexualKaren]

24. Yes, but that is separate issue..

Since the stated purpose of this legislation is to punish Delta it is still unconstitutional.

[unblock]

25. no, they passed a tax bill treating delta the same as everyone else.

they *were* going to give delta some favoritism and decided against it.

delta ends up getting treated like anyone else, so it's hard for them to show constitutional injury.

[TranssexualKaren]

29. Well, if I were a lawyer for Delta...

Then I would argue that it is punitive to give something in the first place if it can be taken away for vindictive reasons.

[unblock]

34. delta lobbied for the tax break in the first place and afaik it didn't make it into law.

it made it into a draft of the bill but they took it out of the final version.


i'm totally with you that what these politicians did is horribly corrupt. it's just that delta was asking for something corrupt themselves, and can't really make a legal case that they're entitled to their corruption.

delta can move out of atlanta and/or stop contributing to the politicians behind these shenanigans. but they can't really sue over not getting special treatment even if it was revoked corrupt reasons -- after all it was being contemplated for corrupt reasons in the first place.

[TranssexualKaren]

37. Perhaps I have misunderstood the newspiece

It was my impression that the Georgia legislature was repealing existing legislation, are you saying this is not the case.

[unblock]

40. my understanding is that they were passing a broad tax bill covering many things.

and had planned on inserting a big break on jet fuel for delta as part of it.

in retaliation against delta, they dropped the intended tax break for jet fuel and then passed the rest of the tax bill.

[sl8]

54. Some history on the jet fuel tax break:

From https://www.taxrates.com/blog/2018/02/14/georgia-governor-champions-sales-tax-exemption-jet-fuel/:

...

Other airlines would also benefit from the proposed exemption, since fuel is the second highest input for airlines. Sean Williams, vice president for state and local government affairs at Airlines for America, says the exemption could draw more flights to Atlanta. He notes that North Carolina “saw a 4 percent increase in flights in the first year after removing its sales tax.”

Georgia should be familiar with the effects of a sales tax exemption for jet fuel. After Delta filed for Chapter 11 bankruptcy in 2005, the state exempted a qualifying airline (Delta) at a qualifying airport (Hartsfield-Jackson) from 1 percent of the state sales tax on jet fuel. It extended the temporary exemption three times until 2012, when it made it permanent. However, the exemption was then repealed effective July 1, 2015.

There have been at least two attempts to partially restore the sales tax exemption for fuel since then, though both failed to gain traction. In 2016, HB 898 sought to exempt from any state or local sales and use tax aviation fuel purchased by a qualifying airline at a qualifying airport. Tax would be collected on 20 percent of the fuel purchased, as that was deemed to be consumed in the state. Fuel consumed outside of the state would be exempt.

A less generous measure was proposed in 2017. HB 145 sought to partially exempt jet fuel from state sales and use tax (local sales and use tax would still apply). Qualifying airlines at qualifying airports would not have to pay state sales tax on 55 percent of the jet fuel purchased to travel out of state. State tax would be collected on the remaining 45 percent.

...

More at link.

[TranssexualKaren]

30. If I were an injured party I would have standing for a lawsuit but....

If you give something and take it away.....(see above)

[onenote]

49. The jet fuel exemption would have applied to any purchase of jet fuel at a qualifying airport

It would have benefitted Delta more than other companies simply because Delta buys more jet fuel in Georgia than any other airline.

While I get that it's obnoxious that the state government would "punish" Delta because of their decision to stop offering an NRA discount, I'm surprised that so many people here suddenly are big supporters of tax cuts for large corporate entities.

The original tax exemption was granted when the airlines were barely staying in business after 9/11. It hung around until 2015 despite the airlines recovery and was repealed. But in a Trumpian-like fervor for handing out goodies to corporations, the state was about to give them back the tax break, even though it wasn't needed like it was when it was originally adopted.

[slumcamper]

21. Great question

I haven't looked at the specific provisions of the bill, but it singles Delta out, then I imagine Delta's legal team is already on it and the federal courts will have to answer the question of the scope of bill of attainder or whether this action violates any existing laws governing interstate commerce.

So, once again the judicial branch will have to contemplate the constitutional questions attendant with another extremist law passed by the GOP at a state level. The spew of mean-spirited, right-wing extremist legislation in GOP-controlled states is an epidemic.

On a more fundamental level, the use of legislative power to leverage the tax authority for vindictive and punitive purposes against entities both private (as in Delta) and public (e.g., Blue states) is clearly a central GOP strategy at both federal and state levels. Have Democrats done the same?

[onenote]

50. It doesn't "single out" Delta.

[TranssexualKaren]

53. Yes but they have publicly stated that it is a punishment for Delta!

[onenote]

55. Yes. And that sucked. But it doesn't make the tax break good policy.

Any more than the tax breaks Trump pushed through at the federal level for big corporations.

[TranssexualKaren]

59. Thats a separate issue.

The fact that they are doing it as a form of retribution against an entity (Delta airlines) for taking a legal action (choosing not to partner with the NRA) it is a bill of attainder and is therefore unconstitutional.

[onenote]

63. It is most definitely not a bill of attainder

While it will impact delta more than other airlines because they buy more fuel in the state it doesn’t single out delta or subject them to a law that doesn’t apply to other airlines.

[TranssexualKaren]

66. Yes it is because they have publicly stated that that is their intent.

Last edited Thu Mar 1, 2018, 08:45 PM - Edit history (1)

It doesn’t need to be in the text of the bill, you need only prove intent.

[onenote]

71. Acorn v. US

In 2010, Congress passed a continuing resolution to fund the government that contained the following provision:
None of the funds made available by this joint resolution or any prior Act may be provided to the Association of Community Organizations for Reform Now ACORN, or any of its affiliates, subsidiaries, or allied organizations. At the time, members of the house were accusing ACORN of voter registration fraud.

In ACORN v.US, the Second Circuit rejected a claim that this constituted a bill of attainder. The court cited the Supreme Court's three part test for a bill of attainder -- (1) “specification of the affected persons,” (2) “punishment,” and (3) “lack of a judicial trial." The first and third prongs were not contested, but the court concluded that denying a corporate entity a government appropriation was not a "punishment" for purposes of the Bill of Attainder clause.

In the case of Georgia not giving Delta a tax break that wasn't given to anyone else either, two of the prongs fail: lack of specificity and lack of punishment.

But maybe you have more experience with Bill of Attainder cases and can point me to a case that would support the claim that the refusal of Georgia to give any airline in the state a tax break is a bill of attainder.

[Wwcd]

4. Anxious to hear Delta's response. This is a sort of blackmail isn't it?

?

[vkkv]

11. Seems like it.

[Weed Man]

5. Delta's next response:

We're cancellling all the contracts and will be moving out of Atlanta shortly.

Good luck Georgia, you're going to need it.

[Wwcd]

13. Considering the welcoming offers Delta has been given to relocate...

However it would be a massive undertaking & probably the grandest bluff-call in history.
This should be interesting.

I'm cheering for "Leave!"

[sl8]

58. Well, they didn't get the tax break in 2016 or 2017, either, and they didn't leave.

Maybe this year will be different.

[mountain grammy]

6. The largest private employer in GA. Delta employees, their families and friends.

A lot of voters. Go after these pukes, the best way we can. Beat them at the ballot box. I would think this may resonate with working people.

[Initech]

7. Fucking assholes!

[vkkv]

10. Delta will have to raise prices or announce some lay-offs.. or a corparate move out of state.

I'd start laying off some of those GOP constituents.

[Scalded Nun]

14. Gosh, Republicans resorting to extortion

Who would have thought?

[Initech]

15. If a democrat had attempted that...

The GOP would have impeached, indicted, imprisoned, and popped the champagne. God they are assholes.

[Wwcd]

16. Virginia & New York send "Welcome" to Delta Airlines

https://www.google.com/amp/s/amp.usatoday.com/amp/380523002

Andrew Cuomo
✔
@NYGovCuomo
.@Delta, if Georgia politicians disagree with your stand against gun violence, we invite you to move your headquarters to New York.


Ralph Northam
✔
@GovernorVA
Hey @delta—Virginia is for lovers and airline hubs. You're welcome here any time.

[greymattermom]

18. So was Delta going to pay less for fuel than Southwest?

Both occupy a big chunk of Hartsfield Jackson. How would that even work?

[whopis01]

72. No

There was never any legislation that singled out Delta in any way.

They were going to give all airlines a tax cut on jet fuel purchases. Delta buys more than anyone else there, so they would have benefited more.

But now they didn’t pass the tax cut.

[OneBlueDotBama]

22. How Does This Work as...

Delta owns their own refinery, Trainer in Penn, they bought it from Phillips in 2012.

[Vinnie From Indy]

23. Delta should form a PAC and donate to Democrats only

[BiminiTwisted]

26. There goes any chance at all for Georgia gettinf Amazon's new headquarters.

Good job GOP.

[louis-t]

27. Georgia government picking winners and losers.

Exactly what repugs seem to complain about often.

[ProudMNDemocrat]

28. Delta has a huge presence in Minneapolis........

Locate here. Delta bought out Northwest, whose hub was Mjnneapolis.

[Wwcd]

33. Yes. I remember Delta & Frontier being the main Northern carriers yrs ago

Denver & Mpls

[pwb]

35. The republicans always overstep. This will hurt them bigly.

Delta could charge customers a surcharge and call it the republican gun lovers tax.

[onetexan]

39. exactly, they can pass the cost to passengers

it doesn't lose either way. But i do think Delta has grounds for this being unconstitutional and can sue the state. Even if they don't win, they can buy time while lawsuit is being litigated. In the least, to make a point for the state not to screw the company again.

[samir.g]

38. Delta should leave that shithole

[kacekwl]

43. How can they pass a bill that punishes one corporation

over the policy on another corporation ? What does that have to do with the state of Georgia ?

[NurseJackie]

44. A drop-in-the-bucket to Delta's profits. This is just a symbolic slap in the fact to Delta...

... I'm guessing that the tax breaks on fuel were likely intended to encourage OTHER airlines to schedule more flights into/out-of Atlanta.

I'll bet that this does not harm Delta in any way.

But it does tell me a LOT about the Georgia Senate... and it's not very flattering at all.

[Cold War Spook]

45. Just for kicks without doing anything,

send each hourly employee a memo stating the government of Georgia won't let us give any raises this year.

[SoCalMusicLover]

46. Just Shows That NRA Is More Important To GA Than Delta

One would think that a company who brings as much tax revenue & jobs to GA as Delta would be King.

But we all know who the real King is. Wayne and all his fellow minions.

[onenote]

47. While reason for doing so sucks, not giving Delta a tax break is good policy

A lot of folks are suggesting Delta should retaliate and go somewhere where they'll get tax breaks. Really? Are we now supporting more tax breaks for big corporate entities?

The jet fuel tax exemption has a long and somewhat checkered history. It was first adopted in the early 2000s when the airlines were struggling. By 2015, the airlines had recovered enough that the legislature voted to eliminate the exemption, which raised more revenue for the state's general fund, some of which was earmarked to help schools. The FAA, however, ruled that jet fuel tax revenues can't be put in a state's general fund, but can only be used for limited purposes relating more directly to air transportation. With that in mind and with the Trumpian theology of cutting taxes for big corporate entities having prevailed at the federal level, the state legislature considered reinstating the jet fuel tax exemption. They ended up not doing so in a fit of NRA-sucking up pique. But the fact that they reason they didn't reinstate the tax break was fucked up doesn't make giving a big corporate entity an exemption good policy.

[Fred Sanders]

57. I agree. If the state will use the tens of millions to improve the public school system AND maybe

take away other corporate giveaways....this is a good start.

Does Delta have a "fuel surcharge", because that would be laughable.

[Thunderbeast]

48. ......and Boeing will NEVER leave Seattle......

oops

[obamanut2012]

51. Cagle is the front runner to be the next GA Gov, too

n/t

[YOHABLO]

64. This is the way he wants to play this. Cater to gun owners and NRA members of Georgia.

[nycbos]

52. I am sure other places would like these jobs

[LastLiberal in PalmSprings]

56. Do Georgia state legislators get a discount for flying Delta?

Maybe the company needs to look into that.

[NCjack]

60. Time for Delta to butter its toast on the left side. nt

[YOHABLO]

65. I wonder if they'd do the same to the Movie Industry that is so prevalent in GA?

A tax break is what is bringing ''Hollywood'' to GA; make no mistake about it.

[TheSmarterDog]

68. *C-O-R-R-U-P-T-I-O-N* What's that spell?

[paleotn]

69. Delta....

we're ready if you are.....

Nashville
Greenville / Spartanburg
Jacksonville
Charlotte
Austin
Piedmont Triad
Raleigh / Durham
Memphis.......

[jmowreader]

70. Simple but expensive countermove

Use their Citizens United-authorized corporate personhood campaign contribution authority to endorse every Democrat running for office in the State of Georgia.