|SUV for FREE!!||husker|
Jan 20, 2003 2:57 PM
|Just because I know that you guys and gals love to argue this stuff more than who poses and who does not.
Free SUVs will be possible under George W's new tax plan.
|There's some malarky at work here ...||Humma Hah|
Jan 20, 2003 4:13 PM
|Have you ever been talked into buying "the most expensive house you can afford" by a realtor who tries to convince you that you need the big tax deduction? They're asking you to spend, say, $3000 a month in order to save less than $1000 a month. The effect of this deduction, by the way, has been to inflate house prices, has saved the home-buyer nothing, and has cost the federal government trillions.
All a tax deduction does is reduce taxable income. If you are taxed at 28%, that means you exclude that deductable amount from being taxed at 28%, plus maybe a smaller state income tax rate. Its a substantial savings, but it is a LONG way from free.
I don't approve of encouraging SUV's to be used for purposes better done by a Dodge Neon or a used Schwinn, but it DOES make sense to offer businesses tax deductions for legitimate business expenses. Past tax laws have always had some ways of requiring automobiles claimed as business vehicles from being used as personal transportation -- you are required to maintain a log of usage or to prohibit personal use entirely. Company cars used for private use are considered a taxable benefit.
Any business person who thinks that buying an overpriced, fuel-guzzling, expensive-to-maintain, topheavy beast is made practical because the money used to do so is untaxed slightly more favorably than an economy car would be, should have their head examined. An econonmy car used exclusively for business would also qualify for a deduction, would cost less, would leave more money in the company coffers, and would always make more sense unless the SUV were legitimately needed (probably less than 10% of all SUV's are legitimately needed).
|re: SUV for FREE!!||tmotz|
Jan 20, 2003 8:20 PM
|So people will go buy those big SUV'S so Bush and friends can make more money at the gas pump.|
Jan 21, 2003 12:35 AM
|The tax cut isn't about SUV's. It's about the maximum amount a business owner can right off in a year on new equipment purchases. Sure it could be an SUV if that's a legitimate business purchase, but more than likely, it will be actual equipment for use in the business. Either way, it's not for FREE. It's just simply deducted from the taxable income. If it's not all deducted in the tax year it is purchased, it will be slowly depreciated over a few years. Bush's plan simply encourages business men to make an investment now for their business and for the economy in general. Not a bad idea.|| |