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SENATE COMMITTEE SHRINKS SUV TAX BREAK
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*********READ THIS
FIRST*********
The SUV Tax Deduction has been radically
changed and reduced - READ HERE
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Washington, D.C. - 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
Related Articles:
SUV TAX DEDUCTION LIST
Tax Deductible SUV
Section 179-SUV Tax Deduction
SUV Tax Deduction - Section 179 Pitfalls
SUV TAX Loophole
