Tuesday, June 19, 2007

It's Legal, But Is It Right? Part II

Rep. Allyson Schwartz (D-13) sent out a press release noting that she and other congressional Democrats have a plan to close one particular tax loophole. According to the release:

Originally intended to help businesses buy necessary heavy-duty work vehicles, the "Hummer Tax Loophole" has for years allowed write-offs of anywhere from $100,000 to the current figure of $25,000 for the purchase of the largest, most gas-guzzling luxury SUVs, even as concerns over gas prices and dependence on oil have grown. The change would not affect legitimate business investments in trucks or vans, such as plumber and contractor trucks, farm vehicles, construction vehicles, flatbed trucks, cement mixers, and a variety of other vehicles as designated by the IRS.

Since the law's inception in 1984, the increasing size of gas-guzzling SUVs has produced several models that qualify under this law, many of which get some of the worst gas mileage and are the biggest emitters of heat-trapping pollution on the road today.

Taking advantage of that loophole was legal. I wouldn't have done it but that's one reason why I'm not rich and able to spend beaucoup bucks on political donations.

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