A transport safety bill that just passed the House is stirring up a political storm. The bill includes a provision that would block government agencies from using aircraft tracking data to identify the owners of private jets. Democrats are not happy about it.
According to a report by Politico on Sunday, lawmakers on both sides are butting heads. Those in favor of the restriction argue that the data—broadcast for safety reasons—shouldn't be repurposed to generate tax bills. Opponents say it would make it harder to match aircraft to their owners and enforce tax laws.
The technology in question is called Automatic Dependent Surveillance-Broadcast Out (ADS-B Out), used by the Federal Aviation Administration (FAA). It transmits a plane's location and an identification number. That ID number can be cross-referenced with ownership records—something tax assessors have started doing.
Jeff Prang, Los Angeles County's assessor, told Politico that his office has used ADS-B data since January 1st to identify about 1,000 additional aircraft in the county, totaling $3.5 billion in assessed value. That translates to $35 million in property taxes. Not chump change.
Bryan Bedford, President Donald Trump's FAA administrator, told lawmakers at a May 19 hearing that the agency opposes using ADS-B for airport revenue collection. So the FAA is on the side of privacy here.
Private Jet Demand Surges for Cannes, Monaco Grand Prix
Meanwhile, the private jet business is booming. Operators reported on Monday that demand from affluent travelers is up, according to a Reuters report. The spike is tied to events like the Cannes Film Festival and the Monaco Grand Prix, where the wealthy want predictable travel.
Jet fuel prices have surged since the Iran conflict began in late February, prompting airlines to cut service and raise fares. According to Airlines for America, jet fuel hit $3.20/gallon on Friday. Despite that, private flying has expanded. Market research firm WINGX estimates global private departures are up about 4% this year.
Iran War and Missile Strikes
Speaking of the Iran conflict, tensions are escalating. Economist Peter Schiff argues that President Donald Trump can't afford to end the war before the U.S. midterm elections, because it gives his administration the "perfect scapegoat" for rising costs and inflation.
Iran, Iraq, and Syria recently announced airspace closures after missile strikes between Iran and Israel, even as Trump signaled optimism about a potential deal with Tehran. The war is also sending shipping costs through the roof—prices for a 40-foot container from Asia to the U.S. West Coast have surged 20%.
So while private jet owners might dodge tax scrutiny under the new bill, they're still paying more for fuel. And the rest of us are paying more for everything else.
