Tax break has Hummers rolling off lots

The Arizona Republichttp://www.azcentral.com/news/articles/0101hummer01.html ^ | Jan. 1, 2004 | David J. Cieslak

[backhoe]

There are an amazing number of people around here driving those Hummers now, it seems to me. I don't know if I could, in good conscience, put a 'house price' into a vehicle, even if I could afford to.

I've noticed the same thing here, and every time I see a Hummer, I remark to my wife, "there goes the house in Riverside down the road..."

I just can't see putting that much money in something that wears out a little every time you hit the road, but that's just me.

[mewzilla]

Actually, this tax break is abused a lot. You're quite right that there was actually a good reason for the tax break initially, that farmers, construction folks, and others who depend on heavy vehicles could use the tax break., But the auto manufacturers and their customers aren't dumb, and everyone soon realized that there was a ripe opportunity here. The loop hole needs to be closed, but I won't hold my breath.

[The South Texan]

Gosh darn it I missed the dealine. I wonder if this law is still in effect for 2004?

Those Hummers drive the anti SUV Nazis and the enviro wackos nuts. It should be the offcial vehicle of Free Republic.

[CurlyDave]

Did you read and understand the article? It's a subsidy. Not a tax rollback.

Glenn:

This is not a subsidy. Somehow I don't think you have read & understood the article. Not surprising, since I have yet to see a newspaper get this right.

This is accelerated depreciation of a business asset. Newspapers love to pick up on the Hummer part, but it applies equally well to trucks and a whole lot of non-vehicle business assets.

Whether anyone likes it or not, the fact is that the economy has really started to pick up in the 2nd half of 2003. I personally think that it is partly business cycle, and partly those "evil" Bush tax cuts for the rich.

Any way you slice it, those UAW workers who make the SUVs and trucks which get the accelerated depreciation should thank President Bush for their jobs.

Why do I think their union leaders will be ungrateful?

[StriperSniper]

Another less-than-charming oddity was all-electric heat...

That can be fun. Growng up we had a small vacation house down the Jersey Shore that just had electric. If we made a winter trip, we would go and turn on the heat and then at least go out for a long dinner before we would come back to turn on the water.

here, on the water, it's bitter cold

As much as I hate the cold, water is a plus to me. While a cold moist wind from the ocean can be bone chilling, I'm trying to get a few guys together to go fishing tomorow(a few miles South of here:Station ALSN6 - Ambrose Light, NY). Up here at this time of year it is actually warmer at sea than on land often. The local water temps are around 40 in the harbor, 44 out in the ocean by that tower, and if you run out about 100 miles, temps are up in the mid 50's so it's warmer to be on a boat than on land.

Of course, one could also say I'm rationalizing for an excuse to just keep fishing right through the winter....

;-)

[punster]

Of course, the best commercial for the HumVee:

Man (on television screen) announces, "My wife gave me a Hummer for Christmas!"

[SierraWasp]

"It should be the offcial vehicle of Free Republic."

Now there's a Capital Idea!!!

[Glenn]

This is not a subsidy.

Of course it is. The government is forgiving taxes that the rest of us must pay to increase activity in certain sectors. The lack of foresight that allows a self-employed plumber to buy a Humvee and erase his income for the year is just the law of unintended consequences at work. This is not monopoly money. Someone is paying for this (unless there has been a decrease in government spending to cover it -- have you read anything about that?).

[backhoe]

One of the many "things we never got around to doing" was build a dock for boating and fishing- the Back River is the alternate Intercoastal waterway here, and deep enough for cruise ships and barges. Then again, watching my neighbors do the yearly "let's repair the dock" routine was a disincentive, to say the least.

The problem we had with electric heat was it was heat pump only- no electric heaters in the ducts at all, or baseboard heaters, or radiant heat. If we'd had those, it would have been a lot more cozy.

[SierraWasp]

"Therefore the government pays for $7300 of the cost of the vehicle."

Are you serious? The government can't pay for anything!!!

It steals the money in the first place with "Ill Gotten Gains!"

Thou Shalt Not Steal! Government Hates Competition!!!

And finally, since government doesn't produce anything, how could it possible PAY for anything?

[StriperSniper]

watching my neighbors do the yearly "let's repair the dock" routine was a disincentive, to say the least.

Then there is the fun of boat maintenance and repair, same for fishing tackle, then there are the bait pens....dock repairs are just the start. ;-)

[SierraWasp]

"The government is forgiving taxes that the rest of us must pay to increase activity in certain sectors."

Why are you espousing "The Politics Of Envy?" Business people take all the risks and create all the jobs! Give 'em a break... not a brake!!!

[Glenn]

Why are you espousing "The Politics Of Envy?"

Why are you being so obtuse?

[SierraWasp]

"...that it will cost the government about $1.5 billion in tax revenue."

I always have trouble with that "cost the government" concept!!!

[SierraWasp]

"Why are you being so obtuse?"

It's called "Triangulation!" (grin)

[VeniVidiVici]

Someone is paying for this...

Someone is also paying less for this. Nobody is stopping you from starting a business and buying one.

[SierraWasp]

"It is a business truck! Not!"

It sure is!!! Look at all that advertising business all over it!!!

[krb]

Is this you?

[BOBTHENAILER]

My lease runs out next spring, when it does, I think I will take you up on the "official vehicle idea".

Just think of all the liberal piss-off bumper stickers one could get on the back of a Hummer.

[Atlas Sneezed]

It's a subsidy.

---

How is treating a business purchase of a truck the same as any other business purchase a "subsidy"?

Would you abondon the practice of taxing business prifits, and instead start taxing revenues of businesses that have no profits?

The only distortion in the tax code is that smaller business vehicle purchases can not be fully deducted or depreciated.