SUV Loopholes Cost Billions

[IChing]

People who use tax loopholes when purchasing SUVs will reduce federal tax revenue by $2.6 billion next year, according to a report from Congressman Ed Markey. The Massachusetts Democrat wants to close the loophole with a bill titled H.R. 5579, the No Special Subsidies for Gas Guzzlers Act.

In his report "Tipping the Scales," Markey points out that SUVs are classified as trucks and therefore don't have to pay the gas guzzler tax that is assessed to vehicles that get less than 22.5 miles per gallon.


"The purchase of the 20.5 mpg Audi incurs a $1300 gas guzzler tax; the purchase of the less efficient 15.8 mpg Jeep is gas-guzzler-tax free. Similarly, a 21.7 mpg Chrysler 300C, a large sedan, pays a gas guzzler tax of $1000, but the 13.9 mpg GMC Yukon Sierra, a very large SUV, pays no tax."

Another loophole allows business owners to writeoff most of the cost of acquiring the heaviest SUVs instead of a car or station wagon.

Markey estimates that if left in place the loophole will reduce tax revenues by nearly $11 billion by 2011.

http://markey.house.gov/index.php?option=com_content&task=view&id=2073&Itemid=141

[pooja]

1. Well, the theory goes...if you are small business... you are most

likely to use these in everyday trips to coscos.... so its ok to be tax free.

[IChing]

2. It's a great bill but I doubt if the repulicans or the lobbist

will ever let it see the light of day until after the elections.

[ThomWV]

3. Friend Of Mine Bought A 3/4 Chevy Truck Last Year. 100% Tax Deduction

Wrote the whole god dam thing off, and bragged about it like he had got one over on the Republicans.

On Edit: Oh, that was $27,000 we're talking about here. In his tax bracket that reduced his taxes on the order of $5,000. He actually had to order extra shit on it (ridiculous rear wheel steering) to make the weight to get the greatest tax advantage

[TheFriedPiper]

4. Bushco wrote the law to encourage more oil use

which increases their profits.

Always follow the money. Always.