Jet industry says Obama tax plan would cost jobs

WASHINGTON - The corporate jet aircraft industry is scrambling to fend off President Barack Obama's proposal to eliminate a tax break that encourages businesses to purchase the planes.

Aviation industry officials say the proposal would hurt the economy and cost jobs.

The General Aviation Manufacturers Association says aircraft manufacturers, fuel suppliers, repair services and other segments of the industry employ 1.2 million people and generate $150 billion in economic activity.

Industry officials say if Congress goes along with Obama's recommendation to extend the tax depreciation schedule for corporate planes from five years to seven years there will be less incentive for companies to buy new planes.

A White House spokeswoman said the president just wants to end rules that favor corporate jet owners over the airline industry.