SUV tax break that us Americans are paying for.
 

Thanks to a generous tax credit, Karl Wizinsky is driving a very large vehicle these days ? a 2002 Ford Excursion.

"It doesn't hurt to have a larger vehicle, but I wouldn't say it's a requirement of my business," he said on a cell phone while driving the Excursion. "But I ended up saving $32,000."

This year, the perks of buying a large SUV ? if you're a small business owner ? got even bigger.

Congress recently passed a tax bill, as proposed in President Bush's economic stimulus plan, that offers a $100,000 tax credit for business owners who purchase any vehicle weighing 6,000 pounds or more when fully loaded.


The tax credit for large vehicles was originally created in the mid-1980s to help farmers and small business owners purchase trucks and other large vehicles needed for hauling. The measure is designed to support and encourage small business, which, in turn, can improve the economy.

But anyone who is self-employed can apply for the credit and any vehicle weighing more than 6,000 pounds, including large SUVs and Hummers, which get 8 to 13 miles per gallon, can qualify. Originally the amount was much less ? at $17,500. As the tax credit limit has increased, so have the number of claims.

According to the Washington watchdog group, Taxpayers for Common Sense, about 100,000 owners of 3.6 million large SUVs sold last year claimed the credit.


Full Story:
http://abcnews.go.com/sections/scite...ax0301001.html

And of course this isn't to persuade people to spend more on oil :winkwink:

Definitely an exploitation of the business expense code. It DOES help the economy since car makers make MORE money on SUVs than on regular cars. Unfortunately, you'd have to take environmental and trafffic safety issues into consideration as well to come up with a net social loss

As much as i love my SUV..I hate the gas mileage..but I need my vehicle to get to where i need to go..it serves it purpose..

cant really use it as a Tax break if i don't make 100k a year:1orglaugh

Someone said that tax break goes away in 2004? Is that true?

Yes.

http://www.deanforamerica.com