As we stare down the $4.00 mark for gas, who remembers this little tidbit?

[Stinky The Clown]

And why aren't Dems yelling about his? It is soooooooo definitive of the Repubs and Bushco.

Monday, May 19, 2003

SUV tax cut

SEATTLE POST-INTELLIGENCER EDITORIAL BOARD

Today might be a good day to buy a new car. Perhaps one of those sporty red ones, just something to zip around town on a few gallons of gasoline.

Nah. Forget the little Cooper. Think big. Ogle a truck, an SUV, even a Hummer II.

How much would that vehicle cost? Say, up to $100,000.

But the price doesn't matter as much because if you buy the right vehicle -- a truck or SUV weighing at least 6,000 pounds -- the federal government will make it affordable.

Under current tax law, it's permissible to write off $25,000 from your taxes in the first year after the purchase of a 6,000-pound truck or SUV. (Then there's the gravy of 20 percent a year after that.)

<snip> Go to the link for a trip down memory lane.

http://seattlepi.nwsource.com/opinion/122382_suv19.html

[Scriptor Ignotus]

1. I remember this

it stemmed from a poorly conceived bill to help out small farmers and business owners who need SUVs/trucks for their livelihood. It didn't really work out like they wanted it too though.

[Selatius]

2. SUVs can be used as depreciation tax shields

Usually, you would think a business is able to write off a portion of its taxes due to depreciation of operating equipment, and this is true, but it has also been extended to SUVs even though most SUVs are not used for business purposes, for hauling equipment, etc. Instead, they are used more for recreation instead, but the owners can still take advantage of the tax shield.

You don't need an SUV to pick up kids from school or go shopping or going to Wal-Mart, but hey, this is a free country, and people are free to be stupid...at everybody else's expense.

[Drum]

3. ...and many will end up as wind shields,

forever parked on the perimeters of yards everywhere.

[Selatius]

5. No, I fear they will end up in the hands of the poorest people

When gas prices get too high, those SUVs are going to be sold off at bargain-basement prices, and the poorest among us will be enticed the most by the low prices.

[tanyev]

7. Maybe the homeless could live in them.

[Greyhound]

9. Thats a good idea. Maybe I should get one.

I'm semi-serious. :shrug:

[MADem]

4. I've been harping about this in other threads

There are quite a few of those tax-break SUVs in my town, driven by the spouses of small business owners who got the huge tax break. Luxury leather, ONSTAR, all the bells and whistles.

See, you just have to HAVE the business to qualify for the break, you don't actually have to USE the vehicle in the business.

Disgraceful. BushCO gave free SUVs to people in exchange for votes. And we, the taxpayers, PAID FOR THEM.

[DUHandle]

6. Your point regarding spouses and driving cars that provide

A tax beak for family companies has pissed me off for a long time.

It’s as common as air to provide a spouse and children with a leased car and write it off.

(the 20 year driving a new Lexus, come on!)

Vacations disguised as businesses trips are old school.

These “little” “perks” for small businesses add up to a lot of trouble.

[Stinky The Clown]

8. Its kinda funny how that works ......

I own a small business and have for (seems like) forever. My 'new' car is a 98 sedan. My wife's 'second car' is a 96 sedan. The truck we own (and use as a truck) is a 96. We're now thinking about a new car to replace the 98 (newest, but with the most miles). My two partners are in pretty much the same boat. And many (most, actually) of the other small business folks I know also drive older vehicles. I can honestly say I don't know anyone personally who has used this tax loophole. I also know that I see many who I *suspect* have.

Most small business owners are just plain old working schlubs lke anyone else. We work hard and eke out a living. We are likely to be corporations or LLCs or PCs. But we're hardly able to afford a $100,000 Hummer or tricked out $50,000 Suburban or Expedidition or Escalade.

No. This tax loophole was aimed squarely at the wealthy ...... and that just isn't the normal small business owner.

[sandnsea]

10. I know many who do

I agree with your general assessment of small business, particularly in rural America.

But I know MANY people who bought SUV's because of the tax credits and the SUV became the family car. They use it for occasional business needs, but most use a more gas efficient vehicle for daily business. Of course, I also know that the local realtor or doctor, owner of the local lumber yard or furniture store, are making well above that $100,000 mark and took advantage of the tax credit too.

[DUHandle]

11. In the bad old days

I worked for a small business and had enough access to the books to see what was going on.

I commend your integrity.

[anoraksia53]

12. seems like they just keep

doin things backwards. Yegads.

[deaniac21]

13. My Mini-Cooper S only get 16 - 18 mpg in town. The only thing

about the car that I hate.