SUV tax cut under attack

[Bozita]

Source: The Detroit News

June 16, 2007
SUV tax cut under attack
House bill targets $25,000 credit for trucks bought by small businesses.

David Shepardson / The Detroit News

WASHINGTON -- As automakers face a key Senate vote on fuel economy regulations next week, lawmakers introduced a new bill Friday that could shrink sales of large vehicles.

The new bill targets a controversial tax incentive that allows small businesses to write off up to $25,000 of the purchase of the largest pickups and sport utility vehicles.

The sponsors, including U.S. Rep. Ed Markey, D-Mass., chairman of the House select committee on global warming, and Rep. Rahm Emanuel, D-Ill., head of the House Democratic caucus, said the bill would fix a "serious mistake" they called the "Hummer tax loophole." More than 30 vehicles -- including the Hummer H2, Chevrolet Suburban, Ford Expedition, Lexus LX 470 and Dodge Durango -- qualify for the break.

-snip-

Markey claims the tax break can be misused. "Forget about zero-percent financing, this kind of incentive unfairly skews the market away from the more efficient, cleaner cars and SUVs American businesses and families say they want," Markey said. "Our government is essentially choosing Hummers over hybrids."

-snip-


Read more: http://www.detnews.com/apps/pbcs.dll/article?AID=/20070616/AUTO01/706160358&theme=Autos-Green-tech-hybrids

[robinlynne]

1. a little bit of sanity. about time.

[Demeter]

2. It Won't Last. Probably Won't Even Pass.

Ding-a-ling Dingell (my very own) and Senile Carl Levin will see to that. Even Stabenow will truckle under.

[badgervan]

3. I'm Surprised....

.... that Michigan's legislators don't see where the future lies in terms of fuel for our vehicles, homes, etc. If they did it right, the car companies could profit handsomely, not to mention reap tremendous good will with the public, in putting much more of their emphasis on alternative fuels like hydrogen ( not ethanol ). We can all see it coming, but Detroit seems to have it's corporate head up it's corporate butt. The companies that see what is inevitable will be the companies that survive - and profit nicely.

[Demeter]

5. Tell Me About It

I think there ought to be a mandatory retirement age for the legislators. If ever there was a place that needed new blood and mentorship, it's the national Legislature.

One of the biggest problems is the pipeline: who is going to wait that long to get into the job? If there were alternatives, I'm sure some of these senile and out-of-touch with reality people would be history. Is it fair to ask the country to wait until the fossilized die? That's why the lobbyists have so much traction--they are the only people who have the time to deal with massaging these egos.

It is far nobler to do a good job, train a few potential successors, and then gracefully retire, than to hog the seat, ignore the people you represent, and rake in the lobbyist take.

[TheFarseer]

4. OMG - Democrats are raising our taxes!!!

I would dearly love to see this pass but I'm not holding my breathe. I see this and legislation to raise CAFE and I hope we are indeed leaning in the right direction finally. We'll see how this plays out.

[Herman74]

6. About Time!!!!! N/T

[Captain Hilts]

7. I'm STUNNED this sucker still exists!!!!!! nt

[Bozita]

8. I know a pharmacist who just upgraded his '04 Lincoln Navigator to an '07

Small neighborhood pharmacy. He's the owner.

The vehicle is not used to transport anything related to the store other than the pharmacist's ass.

"Just taking advantage of the current tax laws."

This really pisses me off.

[mod mom]

14. I have developers in my neighborhood who drive mega trucks w logos who have never

used the back (probably never done physical labor in their lives). It infuriates me. I say tax the hell out of them based on income so as not to hurt real laborers and get the auto industry to increase mileage standards.

[lonestarnot]

15. I say the same!

[Nevernose]

9. 50 bucks says they won't repeal this loophole

Not a wish, just a good bet.

(on edit: stupid non-correcting-the-title-rule)

[dysfunctional press]

10. $25,000?? didn't it used to be closer to $50,000...?

i know two people who bought hummers a couple years back, and because of the tax code- they basically got them for almost free.

[candice]

11. I know someone who is self-employed who bought a behemoth

so his teen-aged daughter would be safe driving around the suburbs. The tax advantage sealed the deal.

[Vinca]

12. They've got to change this loophole.

I know a person who runs a Curves franchise who bought a gigantic, gas guzzling Escalade for the tax write off. It's fine to give a break to a business that legitimately uses a truck, but Escalades?? Hummers?? Navigators?? Give me a break.

[bunkerbuster1]

13. Carl Levin's "compromise"

Someone with the stomach to sift through the details tell me--is it as candy-assed and lame as Levin's recent performance regarding the Iraq war funding vote? Remember "I cannot vote ... to stop funding for our troops who are in harm's way"?