NM legislators propose sales tax on Virgin Galactic tourist flights
We’re here to help you: A bi-partisan proposal by two New Mexico legislators would create a 6% to 9% sales tax on any Virgin Galactic space tourist flights that take off from Spaceport America.
“If the flights really became regular, that could be a nice source of income, not only for the state but also from the GRT shared with the local communities,” [one of] the bill’s … sponsors, Democratic Rep. Matthew McQueen, said.
…”I can’t think of a particularly good reason why we wouldn’t tax this activity,” McQueen said.
McQueen might be too stupid to think of a reason, but I can think of dozens, and they are called the many other airport runways across the globe where Virgin Galactic can launch tourists and bypass this tax. The company already has agreements with several.
The stupidity of this legislative proposal at this time is compounded in that Virgin Galactic, the only customer Spaceport America presently has, is struggling badly. It has yet to fly any commercial flights, and is facing investor lawsuits and an aging fleet. Adding a tax on top of these problems could kill it, thus making this bill a perfect example of killing the goose that laid the golden egg, before the goose is even born. Moreover, it will certainly discourage anyone else from launching from New Mexico, especially as there are so many other spaceport options popping up worldwide with no such sales tax.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
We’re here to help you: A bi-partisan proposal by two New Mexico legislators would create a 6% to 9% sales tax on any Virgin Galactic space tourist flights that take off from Spaceport America.
“If the flights really became regular, that could be a nice source of income, not only for the state but also from the GRT shared with the local communities,” [one of] the bill’s … sponsors, Democratic Rep. Matthew McQueen, said.
…”I can’t think of a particularly good reason why we wouldn’t tax this activity,” McQueen said.
McQueen might be too stupid to think of a reason, but I can think of dozens, and they are called the many other airport runways across the globe where Virgin Galactic can launch tourists and bypass this tax. The company already has agreements with several.
The stupidity of this legislative proposal at this time is compounded in that Virgin Galactic, the only customer Spaceport America presently has, is struggling badly. It has yet to fly any commercial flights, and is facing investor lawsuits and an aging fleet. Adding a tax on top of these problems could kill it, thus making this bill a perfect example of killing the goose that laid the golden egg, before the goose is even born. Moreover, it will certainly discourage anyone else from launching from New Mexico, especially as there are so many other spaceport options popping up worldwide with no such sales tax.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
This will be another nail in the coffin of Spaceport America. V.G. is the anchor tenant at the spaceport. Last time I looked there were a few companies out there and a university leasing some space, but I believe those companies are startups so it is more like a business incubator.
V.G. could easily move their operations to Texas or Florida.
It is customary to wait until a new industry is actually flourishing before you try to tax it out of existence. Given the current status of Virgin Galactic, this is counting your chickens before you’ve even bought the original laying hen. At this rate, there may never be anything to tax. Reality can be such a buzz kill sometimes.
I could see a tax proposal if there was a robust, functioning enterprise here, putting folks up every week & raking in tons of cash, but taxing something that doesn‘t even exist yet is just plain crazy! The voters in this district need to put a pro-business person in this seat!
David M. Cook: This is a bi-partisan bill, with the two co-sponsors a Democrat and a Republican. I didn’t mention the Republican simply because he was at least not dumb enough to say something stupid.
Jay,
At least there is more happening at Spaceport America than the Oklahoma Spaceport. Both catered to a specific client and that has left both just a shell of the original plans.
The beat way for politicians to kill the blooming commercial space sector is to start heavily taxing it.
““If the flights really became regular, that could be a nice source of income,”
The politician’s eternal attitude, how can I steal more money from the citizens to fund my hare-brained schemes and line my pockets
Gladstone – “But Mr Faraday, of what use is this electricity of yours?”
Faraday – “I do not know, my lord, but I predict that someday you will tax it”
“No man’s life, liberty or property are safe while the legislature is in session” – Samuel Clemens
Goose? Golden Egg? More like a pigeon with loose bowels. I would be angry were it levied against Musk…but here? I think it’s wonderful.
As a New Mexican, I must disagree. The state government used $200 million stolen tax dollars to build this boondoggle, so they must continue the theft and graft. How else are us poor taxpayers going to get our money back? The amount of corruption associated with this project is epic!