Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Tax breaks for the rich that undermine national security

Tags:
  1. Feb 20, 2006 #1

    Ivan Seeking

    User Avatar
    Staff Emeritus
    Science Advisor
    Gold Member

    http://www.pressofatlanticcity.com/business/national/story/3181469p-11893943c.html

    So, tax breaks that help to increase the demand for oil... Whose side are these guys on?
     
  2. jcsd
  3. Feb 20, 2006 #2
    I'm happy that they reinstated tax breaks for hybrid cars. The House I think it was had removed that part from the energy bill.
     
  4. Feb 20, 2006 #3

    chroot

    User Avatar
    Staff Emeritus
    Science Advisor
    Gold Member

    The loophole offered by this law has been widely noted in the recent past. It was written into law long before any "passenger" vehicles weighing more than three tons hit the market.

    This very law has encouraged many people to buy larger-than-necessary vehicles to get the enormous tax break.

    What's -really- hilarious is that it's actually illegal to drive a vehicle of more than three tons gross on many of the residential roads in California. Many of the people who buy these SUVs to drive as if they were enormous "cars" around residential areas are actually breaking laws left and right.

    - Warren
     
  5. Feb 21, 2006 #4

    Ivan Seeking

    User Avatar
    Staff Emeritus
    Science Advisor
    Gold Member

    While still working for da man, almost everyone that I worked with drove a company SUV. NONE of them needed one. It was a status symbol.
     
  6. Feb 21, 2006 #5

    loseyourname

    User Avatar
    Staff Emeritus
    Gold Member

    I'm no expert on the federal tax code, but this doesn't make sense. A friend of mine from some years back owned a commercial website that sold goods and he deducted the payments on a Dodge Viper he owned simply by putting the name of the web site on his car and claiming it as an advertising expense. From what I know, what he did was technically legal, even though he wasn't specifically using a vehical deduction. Putting aside the fact that a Viper uses more gas than an SUV (he could have done the same with any car), it seems that if what he did was in fact legal, a small business owner could deduct the cost of a small car just as effectively as that of an SUV. He would simply need to be a little bit more creative in how he gets the deduction.
     
  7. Feb 21, 2006 #6

    Ivan Seeking

    User Avatar
    Staff Emeritus
    Science Advisor
    Gold Member

    I don't think that would fly. He would have to show that he only used it for advertising or only a percentage as applied to the total use would apply; in fact in that case you can sometimes only take the milage deduction. In order to deduct the entire purchase or use of a company car, it must be for company use only.

    But what people do is another thing...
     
    Last edited: Feb 21, 2006
  8. Feb 21, 2006 #7

    Ivan Seeking

    User Avatar
    Staff Emeritus
    Science Advisor
    Gold Member

    A tax disincentive to use gas hogs would be easy.
     
  9. Feb 21, 2006 #8

    chroot

    User Avatar
    Staff Emeritus
    Science Advisor
    Gold Member

    From slate.com:

    - Warren
     
  10. Feb 21, 2006 #9
    I don't see you clamoring to banish Muslims from the US or other Western countries.
     
  11. Feb 21, 2006 #10
    Senator Barbara Boxer proposed re-classifying SUV's as cars last year, in order to close that loophole. Sounds easy enough, but it never happened.

    I have a friend who is a real estate broker. He bought an Excursion for the tax break and a Prius for mileage.
     
  12. Feb 21, 2006 #11

    loseyourname

    User Avatar
    Staff Emeritus
    Gold Member

    No, he didn't get the entire payment deducted. I'm not sure how much it was, but I am pretty sure it was more than the $25,000 (okay, I just saw Warren's post that it was raised to $100K - jeez). It might have just been that he used networking heavily. He really did drive the car around to meet with people trying to get them to buy into his project, using the car as a demonstration of how much money they could potentially make. I suppose not just any business could claim something similar.
     
  13. Feb 25, 2006 #12
    Couldn't car production companies just re-classify their vehicles as something that is not an SUV? Afterall, vehicle classifications such as "SUV" aren't controlled by the government, are they?
     
  14. Feb 26, 2006 #13
    For tax purposes they are.
     
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Have something to add?



Similar Discussions: Tax breaks for the rich that undermine national security
Loading...