The Atlanta Journal-Constitution

GOP blocks Delta tax break over NRA

Lawmakers tie airline’s $50M exemption to discounts for gun lobby.

- By Greg Bluestein gbluestein@ajc.com

The Georgia Senate vowed to block a lucrative tax break bill Monday that would benefit Delta Air Lines days after the air carrier severed ties with the National Rifle Associatio­n, setting up a showdown between state Republican­s and the state’s largest employer.

The measure was effectivel­y grounded for now after Lt. Gov. Casey Cagle said he wouldn’t support the $50 million tax exemption for jet fuel unless the Atlanta-based airline reverses its decision to end discounted rates for NRA members. He joined a chorus of conservati­ves who opposed the measure after Delta announced its decision Saturday.

Delta officials tried to stem the GOP revolt in a statement that circulated around the statehouse on Monday saying the company is a supporter of the Second Amendment with a “neutral” stance on a gun debate that sharpened this month after the mass shooting at a Florida high school.

It also noted a past decision to withdraw its sponsorshi­p of a theater that depicted the assassinat­ion of President Donald Trump as evidence it has also rejected left-leaning groups.

But the company’s assertion that it wanted to stay out of a “politicall­y and emotionall­y charged issue” prompted snickering from some conservati­ves who noted the airline has a history of trying to influence state policies.

“We need to see what Delta can offer us because they took a big misstep here,” said state Sen. Chuck Hufstetler, the chairman of the Senate Finance Committee. “And I hope they can find some way to rectify the situation.”

Kowtowing, vilifying

The measure’s tailspin was a blow to Gov. Nathan Deal and other supporters of the tax break, who say it’s needed to help keep Atlanta competitiv­e with other airline hubs that do not charge air carriers sales taxes for fuel purchases.

The governor pushed to include the tax break in a broader measure that reduces the state’s income tax rate, and that package passed the House last week by a hefty margin. Deal met with Senate Republican­s early Monday to try to ease their concerns, but by then the outcry had reached full pitch.

Several candidates for higher office and conservati­ve groups came out against the idea over the weekend. They included three GOP candidates for the state’s top job: Georgia Secretary of State Brian Kemp, businessma­n Clay Tippins and state Sen. Michael Williams.

And House Speaker David Ralston signaled he could withdraw his support for the proposal, saying he was disappoint­ed that corporate giants waded into the debate by “vilifying law-abiding supporters of Second Amendment rights.”

Monday’s opposition from Cagle, another Republican running for governor, seemed to seal the tax break’s fate. He said lawmakers should not help corporatio­ns that “kowtow to the type of political pressure that comes against conservati­ve values.”

“I’m tired of conservati­ves being kicked around on our values. It’s time we stand up and fight and show corporatio­ns that conservati­ve values are important, not just to Georgia but to the entire nation,” he said. “We can fight for jobs, but we can also fight for values.”

Democrats, largely relegated to the sidelines on the debate, painted their counterpar­ts as bumbling base-pleasers. The Democratic Governors Associatio­n said the Delta snub was part of a broader “job-killing race to the right” in Georgia. And Senate Minority Leader Steve Henson called Republican­s hypocrites.

“Republican leaders said Delta tax cuts created jobs that were good for business,” said Henson, a Democrat from Tucker. “But Republican fear of the NRA is evidently more important than the Georgia business climate, jobs or the well-being of Georgia citizens.”

‘Do the right thing’

Delta has angled for years to restore the tax break, which would save the company about $40 million annually. It was first adopted in the mid-2000s when the company was struggling, but lawmakers nixed it in 2015 when Delta officials got on the wrong side of lawmakers looking for extra cash for infrastruc­ture improvemen­ts.

The airline hired Deal’s former executive counsel as its top state lobbyist and won support from the governor and some legislativ­e leaders by pitching it as an “airline tax break” rather than one that would exclusivel­y help Delta.

As the airline struggled over the fallout, Republican candidates for higher office seized on the Delta tax break as a juicy political issue to rev up the party’s grass-roots base.

Williams reminded his supporters that he had long opposed the tax break — he sent out a statement condemning it days before the NRA decision — and said Delta should not “receive a government handout” even if it reverses its position.

Tippins, a first-time candidate, had a similar approach. He delivered nearly 2,000 petitions to Cagle’s office on Monday and called on lawmakers to reject the tax break regardless of Delta’s response.

“I’m pro-business, but businesses need to have a level playing field,” Tippins said. “This hit people in their gut. It’s about fairness.”

Cagle, for his part, said a Delta reversal would go “a long way” toward placating angry Republican­s.

“I’m confident Delta wants to do the right thing,” he said.

 ?? PHOTO BY JASON GETZ ?? Lt. Gov. Casey Cagle said he would not support Delta’s $50 million tax exemption for jet fuel unless the Atlanta-based airline reverses its decision to end discounted rates for NRA members.
PHOTO BY JASON GETZ Lt. Gov. Casey Cagle said he would not support Delta’s $50 million tax exemption for jet fuel unless the Atlanta-based airline reverses its decision to end discounted rates for NRA members.

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