Tax break has Hummers rolling off lots

Arizona Republic ^ | 1/1/04 | David J. Cieslak

[freedom44]

Buy a shiny new Hummer or a fully loaded Cadillac Escalade, then get a hefty tax deduction on the monster vehicle, all compliments of Uncle Sam.

Dozens of wide-eyed customers packed into the Valley's Hummer and Cadillac dealers on New Year's Eve to take advantage of a federal tax windfall allowing them to buy the oversize gas guzzlers and deduct the purchase from their 2003 tax bills.

[explodingspleen]

This article gives me that odd tingly feeling that makes me want to repost it at DU. >:)

[spoonfork2000]

Dealers say the tax break encourages people to buy cars, which contributes to a healthy economy.

I agree 100%. If Hummers were so bad, no one would buy them.

[elbucko]

"We're selling a ton of cars,..."

Which translates into jobs. From engineer to line mechanic, boardroom to sales room and software to hardware. It demonstrates that it is time for the US and the 50 states to take a disparaging view of taxes, as did the Founding Fathers, and relegate Keynes to the ash heap of history.

[paul51]

In the eyes of his three sons, buying the "sunrise" orange Hummer for $55,000 made him the hippest dad in the Valley. "I bought it mostly because my boys think it's cool, and I'm a boy who thinks it's cool, too," said Bresnahan, 42. "It's awesome. I feel like a king."

That should last about a week. What a loser

[Central Scrutiniser]

I know the guy in the picture, Dave Bresnahan, went to school with him. He is also the man responsible for the very famous potato play in minor league baseball. He was the catcher, called time out, got a new glove, with a peeled potato in it, took the pitch and then threw the potato over the 3rd baseman's head, the runner on third stole home, and he was tagged out with the real baseball. That was his last play in the minors.

[elbucko]

The windfall doesn't come without a price for the government. One expert estimated that if 100,000 people utilize the loophole, it will cost the country about $1.5 billion in tax revenue.

Not so fast, Mr. Cieslak, of the Arizona Republic, this estimate supposes that the auto sales personel, the dealer, and the SUV manufacturer do not pay income tax on the profit of these vehicles. Figure the income taxes paid because of these transactions, then report on how much "it will cost the country". Until then, your "experts" estimate of cost is only an excessively bad guess and both of you will probably vote for "Mad Howard".

[spokeshave]

Also works for my second hand Dodge 250 4X4 with that turbo Cumings.

Enjoy

[truth_seeker]

"That should last about a week. What a loser."

Call a guy a loser, that just bought a $55,000 vehicle? I'd say he's doing okay.

He's home with his sons, too. And he's honest about such things.

Face it. The tax break works. Stimulates building and sales of more vehicles.

Your ideas?

[paul51]

I'm all for the tax break. Took advantage of it myself last year. As far as someone buying a hummer because his kids think it's cool and will make him hip? Well, the guy says himself he's a boy. I believe it.

[Lib Buster]

It also assumes that the vehicles would have been sold without the tax break. Most would not, in fact many would never have been manufactured. The government has lost nothing.

[SierraWasp]

Well... Then check this out!!!

[Myrddin]

My 1999 Saturn SW2 was smashed by a 17 year old drunk driver in July. I replaced it with a 1999 Ford F150 4X4 with the 5.4 liter Triton engine in August. I needed a truck and I'd put off the purchase. That big snow storm outside is reason enough to have it. I had not considered that it might meet the weight requirements for the tax break. I put out $20K to take the truck home. I should look into what other requirement apply. I'm pretty sure it meets the 6,000 lb GVW requirement.