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Wednesday, August 5, 2009

Transportation Clunker Opposition and Memory Loss

Posted by Charles Mudede on Wed, Aug 5, 2009 at 8:45 AM

Says the republican:

Some critics of the program remain. Sen. Tom Coburn (R-Okla.) told the New York Daily News, "Here we are incentivizing the purchase of cars, [and] we're taking money from our grandkids by adding to the national debt...Why not incentivize demand for boats? Or how about RVs?"

Dear republican, recall this:

Under current tax law, it's permissible to write off $25,000 from your taxes in the first year after the purchase of a 6,000-pound truck or SUV. (Then there's the gravy of 20 percent a year after that.)

And what was the Bush thinking:

In hopes of encouraging more business spending to help jump-start the economy, President Bush's new Economic Stimulus Plan would triple the equipment deduction currently available to small business owners (from $25,000 to $75,000) — enough to make some of the largest, most luxurious SUVs fully deductible.

Really, luxury cars for small businesses?

Thanks to a generous tax credit, Karl Wizinsky is driving a very large vehicle these days—a 2002 Ford Excursion.

"It doesn't hurt to have a larger vehicle, but I wouldn't say it's a requirement of my business," he said on a cell phone while driving the Excursion. "But I ended up saving $32,000."

The government under republican rule was basically buying SUVs for rich people.

Comments (8) RSS

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"but it's different now because there's a deficit!" apply as necessary.

Posted by Max Solomon on August 5, 2009 at 8:58 AM

This may be the best thing you've ever blogged, Charles.

Posted by gaiaslastlaugh

on August 5, 2009 at 9:08 AM

And with the republicans, if that rich person was male, white, and protestant, they got triple bonus points as well.

Posted by Urgutha Forka on August 5, 2009 at 9:20 AM

This is sadly true. My (least favorite) uncle who is a doctor got a $25K tax credit as long as he drove his big ass SUV on a truck chassis to and from the doctor's office. Pissed me off then, pisses me off now.

Posted by psquare on August 5, 2009 at 10:06 AM

And now we subsidize rich people buying new cars again.

I don't think it's wrong, I think it's wrong no one's giving me 4500 dollars for not having a fucking car at all.

Posted by dwight moody on August 5, 2009 at 10:26 AM

Did we ever get rid of that "corporate" subsidy?

I don't think so.

Remember, only stupid rich people pay the full tax rate - most of them pay 8 percent federal tax rates while you renters pay the full rate and most middle class families pay near the top rate.

Posted by Will in Seattle