(Tax the rich, but not their private jets?)
Reuters reports that NetJets Inc, a private jet-sharing company owned by Warren Buffett's Berkshire Hathaway Inc, sued the United States to recoup $642.7 million in taxes and penalties it said were assessed illegally.
The lawsuit filed Monday by four NetJets units contended that the Internal Revenue Service mistakenly assessed a "ticket tax" meant to apply only to passengers who buy seats on commercial or charter aircrafts.
As a manager of private aircraft, NetJets said its services do not qualify as "taxable transportation," under Congress' definition of the tax, imposed in 1954. Rather, NetJets said it acts as an "agent" to owners of the planes. NetJets also said rivals have not faced similar taxes, putting it at a competitive disadvantage, and that it did not have clear guidance on how to collect the tax from passengers….
Read more at http://www.reuters.com/article/2011/11/17/berkshire-netjets-lawsuit-idUSN1E7AG1WC20111117
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