<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Dan:
Apparently there was an article in yesterday's Wall Street Journal, "Personal Journal" section about this. You need a subscription to view the whole article online but:
- Dan
<HR></BLOCKQUOTE>
To: National Desk
Contact: Keith Ashdown of Taxpayers for Common Sense, 202-546-8500, ext. 110
WASHINGTON, Oct. 3 /U.S. Newswire/ -- The Senate Finance Committee voted earlier this week to shrink a tax deduction for large Sport Utility Vehicles from $100,000 to $25,000, according to Taxpayers for Common Sense, a national budget watchdog organization.
"While this hummer of a tax break needs to be run over and killed, shrinking of it is a good first step," said Keith Ashdown, Vice President of Policy at Taxpayers for Common Sense. "In light of record budget deficits, the Senators did the right thing in trying to limit one of the biggest giveaways in the tax code."
The current law allows small business owners to deduct up to $100,000 of the purchase price of trucks weighing at least 6,000 pounds, including more than 38 Sport Utility Vehicles. The Senate Finance Committee proposal modifies the credit so that the SUV models can only receive a $25,000 deduction. This would reverse the deduction to how it was before the $ 350 billion economic stimulus package increased the expensing for business equipment to $100,000.
The original $ 25,000 break was created to help farmers purchase light trucks and tractors without having to pay a tax assessed on other expensive vehicles. But, the provision can provide massive financial benefits: the write-off for a 6,000-pound SUV can translate to a windfall of $33,000. Car dealers handling the heavier SUVs quickly took advantage of the loophole. The Joint Committee on Taxation estimated that closing the loophole could generate nearly $ 1.3 billion in revenue over 10 years.
"As long as SUVs are flying off of dealership lots, the current break makes no fiscal sense. This decision moves us one step closer to eliminating this inequitable tax break," continued Ashdown. "While it isn't a knock-out punch, it is definitely a body-blow to this outrageous loophole. "
The SUV provision is part S. 1637, the "Jumpstart Our Business Strength" (JOBS) Act.
http://www.usnewswire.com/