"The one that forced soccer moms to buy SUVs."
#14 | Posted by goatman at 2009-04-24 02:38 PM
YEAH!
Forced, no. Manipulated, yes.
A funny thing happens when Industry insiders get to write the Legislation.
A federal tax law, originally intended to assist farmers and business owners requiring light trucks or vans in their workplaces (see Section 280F(d)(5) of the Internal Revenue Code of 1986), can be exploited by any business that purchases one of 38 SUVs that are 6000 pounds or heavier (as SUVs grew in size, they eventually met the weight minimum needed to meet the requirements for the tax break).
Since most states follow federal tax code, businesses can also receive state tax breaks. The 1986 federal bill language allowed for a business to deduct up to $25,000 from their taxable income. President Bush's 2002 economic stimulus package added a bonus deduction allowing business owners to also expense 30 percent of the difference between the purchase price and the $25,000 cap. Last May, the passage of the Jobs and Growth Act increased the cap to $100,000 and the bonus deduction to 50 percent.
A qualifying buyer can now deduct $106,000 of the suggested $110,000 price of a Hummer H1 SUV ($100,000 direct deduction plus $5,000, or 50 percent of the $10,000 balance, and $1,000, which is the first year of depreciation for the $5,000 balance). That would translate into a $37,100 savings on the purchase price if the taxpayer were in the 35 percent income-tax bracket.
Now im sure that you and your gang would support similar legislation for economical vehicles ---- not!
