tax break for suv drivers.

[Sushi X]

i was waiting for one of you to post this.

this is a COMPLETE SPIN by the media. the break is for small companies to get a tax break on any vehicle that they use FOR THEIR BUSINESS. not only do you liberals AUTOMATICALLY ASSUME that these people are all going to buy SUV's, you try to paint some picture of the republicans being behind some diabolical plan.

good try, but the rest of us arent buying it.

not any, just suv's and trucks. which is fine with me as long as it's for small businesses who need breaks so they can survive the competition.

 

[Warik]

the garbage men are just as important as doctors. without them who would take the trash to the dump? just like without doctors to take care of us when we are sick or hurt.

Without the garbage men, who would take the trash to the dump? The doctors after 10 minutes of training.

Without the doctors, who would take care of us when we are sick or hurt? Not the garbage men.

The doctor could do the garbage man's job any day of the week. The garbage man could never hope to do a doctor's work. THAT is why a doctor is paid more than a garbage man and THAT is why the doctor should not have to pay a greater percentage of his salary to the government in the form of income tax.

That's the difference between blue collar and white collar buddy - notice how the blue collars are the ones complaining about how the wealthier do not pay more taxes.

-Warik

 

[Warik]

An across the board flat tax system is unfair to the working poor because their is a threshold income required for the basic necessities.

The current tax code has someone earning $15,000/yr paying 15% = $2,250 in taxes.

My idea of a flat tax code would have someone earning $15,000/yr paying 15% = $2,250 in taxes.

So, by your logic, it is unfair for everyone, including the poor man, to pay 15% income tax, but it IS fair for the poor man to pay 15% income tax as long as everyone else pays more.

I feel enlightened.

-Warik

 

[Sushi X]

there's no doctor i know of that is gonna ride around in a garbage truck and take the garbage to the landfill.

it's the white collars complaining about the blue collars wanting to pay less taxes as well. it works both ways.

i make less than 15k a year right now and pay 17%, so the 15% base you mentioned is a bit off. i would'nt mind it being 15% or even 10%. a flat tax sounds good but i doubt it would work and if it could i'd go for it. it'll stop the wealthy from whinning about not having enough money, and make everyone happy, almost.

 

[Warik]

there's no doctor i know of that is gonna ride around in a garbage truck and take the garbage to the landfill.

You've missed the point of my post completely. The point of my post is that ANYBODY CAN do the garbage man's job, but NOT ANYBODY CAN do the doctor's job. That is why the doctor is "worth" more to society (not personally as a human being, but professionally in terms of the service he is providing) and why he is paid more.

it's the white collars complaining about the blue collars wanting to pay less taxes as well. it works both ways.

Your point? They have a valid claim. Blue collar workers receive greater benefits from tax collection and they pay the least taxes while the higher up on the white collar ladder you go, the more taxes are paid and the fewer benefits are received.

Let me put this in terms you can't so easily twist.

You're a salesman selling new Fords. There are 3 other people on the sales staff. You've been selling cars for 5 years and you drive a Ford - you're a fucking beast at selling Fords. The other salesmen range in skill level from newbie to somewhat experienced.

Last week was a very good week for you and you made $500 in commission in addition to your normal salary. The other salesmen think it's not fair because they only made $100 in commission along with their normal salary.

According to the newbie (who just got hired last week), you should be making a smaller commission percentage because he's not as good a salesman as you and it's not fairi that you're making more than he is simply because you're a better salesman than he is. He thinks you should only be making $125 in commission from those sales.

How do you feel about that?

i make less than 15k a year right now and pay 17%, so the 15% base you mentioned is a bit off. i would'nt mind it being 15% or even 10%. a flat tax sounds good but i doubt it would work and if it could i'd go for it. it'll stop the wealthy from whinning about not having enough money, and make everyone happy, almost.

Why wouldn't it work? The only reason an inflated federal income tax rate exists is to fund all of the social programs that wouldn't exist if a) the lower middle class got to keep more of their money each year instead of sending it to the government or b) the government would stick to it's basic duty of upholding the constitution and defending the country from domestic and foreign threats as opposed to babysitting.

Who wouldn't be happy? The parasites. Quite frankly, who gives a fuck if they are unhappy?

-Warik

 

[p0ink]

not any, just suv's and trucks. which is fine with me as long as it's for small businesses who need breaks so they can survive the competition.

i have heard otherwise. please show me an article that says this tax break applies only to SUV's and trucks.

 

[thebabydoc]

By the way-

The accelerated depreciation schedule is for category three vehicles- trucks with a GVR of over 6000 lbs-

Only the Hummers (H1 & H2), Sequoia, LX450, and Land Rover qualify for this deduction- check your vehicular weights before buying. It is a "heavy construction machinery" deduction and therefore can be depreciated at an accelerated schedule (5 years instead of 10).

 

[Hengst]

ALL OF YOU ARE MISSING THE POINT

You all are arguing mathematics, the value of hard work and so on. The reason why this SUV tas break is so insidious is that it reveals the lies behind George W. Bush's rhetoric.

He repudiated the Kyoto Climate Treaty. Regardless, he claimed he was still concerned about the environment. HOWEVER, his tax plan subsidizes gas guzzling, air polluting, environmently damaging, oil industry dependant vehicles.

Promoting the use and sale of SUVs will continue the US dependancy on imported oil.

THAT is why it is so wrong. No one disagrees that small business owners should have help in these tough economic times. It just that there could be and should be other solutions.

 

[Sushi X]

SUV, truck owners get a big tax break

Loophole allows hefty write-off for vehicles

By Jeff Plungis / Detroit News Washington Bureau

Eligible vehicles


Here are the 38 light truck models that qualify for an extra $24,000 accelerated depreciation tax break:
BMW X5
Cadillac Escalade
Chevy Astro
Chevy Avalanche
Chevy Express
Chevy Silverado
Chevy Suburban
Chevy Tahoe
Dodge Durango
Dodge Ram Van
Dodge Ram Maxi Van
Dodge Ram Wagon
Dodge Ram 1500
Dodge Ram 2500
Dodge Ram 3500
Ford Excursion
Ford Expedition
Ford Econoline E-150
Ford Econoline E-250
Ford Econoline E-350
Ford F-150
Ford F-250
Ford F-350
GMC Yukon
GMC Safari
GMC Savana
GMC Sierra
GMC Sierra Denali
Land Rover Discovery
Land Rover Range Rover
Lincoln Blackwood
Lincoln Navigator
Mercedes ML 320
Mercedes ML 500
Mercedes ML55 AMG
Toyota Land Cruiser
Toyota Sequoia
Toyota Tundra




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WASHINGTON -- Karl Wizinsky wasn't thinking about buying a new vehicle, and certainly not a big SUV. So why is there a brand-new $47,000 Ford Excursion sitting in his driveway?

He was able to write off $32,000 of the purchase price as a business expense.

"We really did it because it was a pretty hefty deduction," said Wizinsky, a health care consultant in Novi.

At the same time the tax code sanctions $30,000 write-offs for SUVs, prospective purchasers of a fuel-efficient hybrid vehicles qualify for a relatively small $4,000 tax credit.

A deal to extend similar tax credits to other environmentally friendly vehicles remains stalled in Congress.

It's all legal, and accountants and auto dealers are beginning to catch on.

"If it can save the consumer money, it's most likely that the dealer is going to know about it," said Andrew Beck, spokesman for the National Automobile Dealers Association. So far, there is no indication anyone in Congress wants to close the loophole. In fact, even higher depreciation tax breaks are on the table as part of the next round of tax cuts President Bush is planning.

The SUV tax break is becoming a staple of advice in the accounting world, as small business owners such as Wizinsky are advised on ways to reduce end-of-the-year tax bills.

The size of the tax break has been growing under a schedule that became law in 1996. That's when Congress changed tax law to encourage business investment.

The scale of the tax break surprises accountants and tax experts, who feel bound to recommend SUVs and other light trucks to small-business clients.

"As I understood it, the reason (for the tax break) is to encourage business investment. That's what happened in my case," Wizinsky said.

At the same time, the tax break seems to contradict other national goals, such as improving vehicle fuel efficiency. A more economical fleet would aid two important national goals: reducing U.S. dependence on foreign oil and cutting greenhouse gasses.

The total cost of the loophole hasn't been calculated by the government, but Taxpayers for Common Sense, a nonpartisan Washington watchdog group, estimates the SUV tax loophole could cost taxpayers between $840 million and $987 million for every 100,000 vehicles sold to businesses.

Aileen Roder, the group's program director, questioned whether there is a national need to subsidize sales of the largest light trucks -- given Americans are buying SUVs in record numbers.

"This is one of the most lucrative breaks in the tax code," Roder said. "We're making it a fiscal no-brainer for businesses to buy giant SUVs."

To get an idea of the scale of the SUV tax break, a credit aimed at making it easier for small businesses to comply with the Americans with Disabilities Act costs $525 million per 100,000 uses.

A tax credit to reimburse teachers for classroom supplies annually costs the treasury $250 million per 100,000 uses.

And a provision allowing taxpayers to put up to $3,000 of tax-free earnings per year in private retirement accounts costs about $90 million per 100,000 taxpayers, according to Taxpayers for Common Sense.

There are long-standing limits on deductions to prevent taxpayers from subsidizing luxury-car purchases. But the limits do not apply to 38 light trucks that weigh 6,000 pounds or more, including the Cadillac Escalade, Dodge Durango, Excursion and Lincoln Navigator.

"We recognized it immediately and started informing people about how to use it," said James Jenkins, an accountant in Southfield. "It's just fabulous. My clients have been drooling."

Jenkins said five clients have used the loophole so far and five more are considering it. Jenkins even considered using the break, test-driving several SUVs.

"It makes you think very hard about it," Jenkins said. "But it was a 30 percent larger vehicle than I wanted."

Here's how the SUV tax break works:

Suppose a business owner wants to purchase a $45,000 luxury SUV for use in his business. He or she could write off $24,000 of the cost under section 179 of the tax code as accelerated depreciation. Then the buyer could write off additional depreciation of the remaining $21,000 under a five-year schedule -- 20 percent, or $4,200, in the first year.

That's a total $28,200 tax write-off.

The balance of the vehicle could be written off over the next five years. A more expensive large vehicle, like a Mercedes E-class SUV, a Range Rover or a BMW X5, would qualify for an even greater tax break.

The break for trucks got bigger this year under a schedule Congress adopted in 1996 when businesses could claim $17,500 in accelerated depreciation on equipment.

That lump sum increased to $20,000 last year. It went up to $24,000 this year. Next year and thereafter the deduction will be $25,000.

In 1996, Congress estimated the five-year cost of the tax break -- for all business equipment -- to be $1.6 billion. But luxury SUVs had barely cracked the market at that time.

IRS spokesman Bruce Friedland said the agency does not keep data on how much the tax break has cost. According to figures supplied by Autodata, there were 3.8 million of the 6,000-pound light truck models sold in 2001.

There are no estimates for how many of the vehicles that qualify were sold to businesses or how many businesses that bought vehicles took advantage of the deduction.

The code is not as generous for luxury cars.

A business owner wanting to purchase a Lincoln Town Car would have to live with a $7,660 deduction, one-fourth what he might save by buying a Lincoln Navigator. It would take more than 15 years to recoup the entire cost of the car.

After Sept. 10, 2004, the luxury-car write-off will revert to $3,060.

Tax experts say the light-truck tax loophole was originally targeted for farmers, so their working pickup trucks would not be treated, for tax purposes, like luxury cars.

There was no mention of the need to stimulate the luxury truck market in the 1996 tax debate.

The House of Representatives attempted to make the SUV tax break even more generous as Congress debated an economic stimulus package in March.

Under the House plan, the cap for accelerated depreciation would have risen from $24,000 to $35,000. That effort died in negotiations with the Senate.

p0ink, read the above. the list is at the top.

 

[thebabydoc]

Once more for the kids in the back of the school bus.

It wsa designed for vehicles OVER 6000 lbs- that's not your average SUV, definitely NOT your explorer, ecpedition, not your X5 or ML300's.

And the "loophole" has been around for more than 4 years, so IT WASN"T GEORGE BUSH'S LAW IN THE FIRST PLACE. So why don't all of you liberal Bush-haters go try and find some other bullshit topic to sell the masses because as a topic to Bush-bash this one holds as much water as Hitlary being a New York state resident or even a heterosexual for that matter.