Posted on 02/20/2006 11:01:31 AM PST by bnacat
OVERVIEW One reason the U.S. government provides tax credits is to promote consumer behavior that benefits the greater good. While not many would argue with a tax credit that allows teachers to recover unreimbursed costs of school supplies, for example, some tax credits demonstrate a failure of our national priorities. The tax break given to small business owners that allows the entire purchase price of a sport utility vehicle (SUV) to be deducted is one of the most glaring examples of a good idea going in the wrong direction.
As long as the end result is less money going into the government's coffers, I don't particularly care what activity is not taxed.
If I were a small business owner, I would fully support this tax provision until we scrap the whole tax code and start over.
As I understand it, it started as a tax break for farmers - so the vehicle's weight has to be 6000 pounds or greater. An amount that the larger SUV's weigh as well.
I've never heard of anything specifically subsidizing SUVs. Does anyone know of a law like this? (Further I didn't know that any purchased vehicle could be written off all at once, dont they need to be depreciated?)
Tax deductions and accelerated depreciation schedules are NOT "how the government spends our money".
The press, as usual, is lying or is just plain wrong. The SUV doesn't have to weigh 6000 pounds. It must have a gross vehicle weight rating of 6000 pounds. My SUV, which weighs 4400 pounds, has a gross vehicle weight rating of 6000 pounds and qualifies for the deduction.
"This tax policy is a real piece of crap."
Why is that?
Real Estate agents (for example) qualify if they pick up their own signs with their HumVee...(from what I understand)
It allows you to depreciate the whole amount in one year versus the usual. You can choose to take it now or later. This is actually old news.
That's a strentch, it's tax fraud if it's not business use, and the link the other poster had on this says any vehicle over 6000 pounds.
I dont see this as a situation where the break should be removed only that small businesses (S corps, and Schedule Es, other flow through entites) which exercise this should run a higher risk of audit for the item.
I feel like a veteran Freeper now---been called a dimwit.
Like expanding the light truck exemption, the SUV tax break was a bought-for present to the SUV addicted US car manufacturing industry.
A 179 deduction will allow more the very first year.
Except that this little provision is probably what has kept the American mfgrs from going bankrupt. It is one of the very few tax breaks that has a significant impact on middle class payors, who are attempting to build their businesses.
Don't get me wrong, I drive a hybrid and think that it's wrong headed as well. But as a short term boost to the economy, it probably worked better than anything else in the last few years.
Gee, I wonder if the auto unions will now support Bush???
/ sar.
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