Senate reduces SUV tax deduction from $100,000 for Hummer to $25000

http://releases.usnewswire.com/GetRelease.asp?id=119-10032003

WASHINGTON, Oct. 3 /U.S. Newswire/ -- The Senate Finance Committee voted earlier this week to shrink a tax deduction for large Sport Utility Vehicles from $100,000 to $25,000, according to Taxpayers for Common Sense, a national budget watchdog organization.

"While this hummer of a tax break needs to be run over and killed, shrinking of it is a good first step," said Keith Ashdown, Vice President of Policy at Taxpayers for Common Sense. "In light of record budget deficits, the Senators did the right thing in trying to limit one of the biggest giveaways in the tax code."

The current law allows small business owners to deduct up to $100,000 of the purchase price of trucks weighing at least 6,000 pounds, including more than 38 Sport Utility Vehicles. The Senate Finance Committee proposal modifies the credit so that the SUV models can only receive a $25,000 deduction. This would reverse the deduction to how it was before the $ 350 billion economic stimulus package increased the expensing for business equipment to $100,000.<snip>

http://releases.usnewswire.com/GetRelease.asp?id=119-10032003

We'll need to watch this and make it doesn't get disappeared.

...people get tax CREDITS for buying/driving the gas-conserving hybrids!

who bought trucks and other vehicles for their businesses

I don't know if they should cut the tax break, but they should limit who is eligible for it

Whenever Senator X with Bill Y and his justification is:

"Do it for the Children"
"Small Business"
"Family Farmer"
"The Church"

WATCH OUT - It's probably not!

:kick:

I just bought a 2004 Honda Civic Hybrid. Since I bought it in 2003, I get a $2000 deduction from my taxes. If I had waited to buy the car in 2004, I would have only gotten a $1500 deduction, in 2005 it will be a $1000 deduction and it 2006 it will be a $500 deduction.

But if I had chosen to by an H2 in 2003, I would have gotten a $100,000 tax deduction. If I wait until 2004 before buying my H2, I would only get a $100,000 tax deduction, and in 2005 the deduction will probably only be $100,000, but they are thinking about someday, maybe reducing that amount to only $25,000. Of course, this will not happen before 2005, and even then they will probably decide to lower it gradually, reducing it in small increments over several years.

You know, there are just so many reasons to hate this current administration, I can't remember them all. I'm going to have to start writing them down and keeping a list, and that just gives me another reason to hate them, because I hate keeping lists.