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Ryanz said:

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Private plane operators aren’t actually getting any new tax break here. Indeed, the Joint Committee on Taxation, a nonpartisan congressional panel that examines tax legislation, says the plane break won’t actually cost anything. The industry and their backers in the Senate, including the super liberal Sen. Sherrod Brown (D-Ohio), explain that the provision merely brings clarity to a long-standing tax dispute, kicked off five years ago by a memo from the Internal Revenue Service.

The provision makes clear that the companies that manage private air travel ― plane owners use them to hire pilots or handle logistics ― do not have to pay a 7.5 percent excise tax on air travel. The 7.5 percent tax is also known as a “ticket tax” and Americans pay it when they travel commercial.

This doesn’t mean private air travel isn’t subject to taxes, there’s just a different kind of tax ― a fuel surcharge that amounts to around 20 cents per gallon of gas. Planes burn through 300 gallons an hour.

Think of it like how car owners pay gas taxes but if you take a taxi, you pay a different fee, said Nel Stubbs, an aviation tax expert at Conklin & de Decker Aviation Information, an aviation research and consulting company.

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