AUTOS: There's No Such Thing As A Free Tank Of Gas
I'm a car nut, and have been since I was in the crib. I intend to comment here often on things automotive. Because I'm so interested in cars, it stands to reason that I'm highly interested in our energy policy. So here's one that just blows my mind.
Gasoline is selling at record levels. I've downsized my own personal vehicles with fuel efficiency in mind, a way of putting my money where my mouth is, since I consider energy policy as regards oil a matter of national security. So while we all ought to be thinking about and working on ways to use less fossil fuel so we can get ourself off the teat of dysfunctional foreign regimes, why is Congress acting against our national security in this critical area?
First they vote to create a $100,000 tax break for people who buy large SUVs (more on this to follow), yet at the same time, limiting the tax break for people who buy fuel-efficient hybrids to just $2,000. Now, as part of the most recent energy bill, Congress is actually limiting the number of hybrid tax credits that will be available, while leaving the unlimited SUV giveaway untouched.
This is obscene, and I have anecdotal evidence that it works exactly the way you might fear. Here's how it works. The giveaway goes to vehicles classified as trucks (which all large SUVs are) for companies even as small as one employee; in other words, a sole proprietorship. The purchase price has to be no lower than $50,000, and can be up to $100,000. So let's say you're starting up a tree-trimming service, or you're a building contractor, or a surveyor, or whatever. Do you go by a utilitarian pickup truck or some other smaller and more economical vehicle? Or do you buy your self a huge, gas-guzzling Ford Excursion, Cadillac Escalade or Hummer H2, and write the whole thing off, even if you use if for personal purposes at the end of the day.
My accountant told me she was advising all of her small-business customers who needed to buy a vehicle to take advantage of it because it was a way to get yourself into a really nice vehicle, virtually for free. And I know two small-business people, one a real-estate broker who bought an Excursion, and the other a tree surgeon who bought an Escalade, who took the government up on this. They both told me it was a no-brainer. They get the nice ride, the government pays the bill.
And the Saudis finance terrorists with what they spend on the gas.
Gasoline is selling at record levels. I've downsized my own personal vehicles with fuel efficiency in mind, a way of putting my money where my mouth is, since I consider energy policy as regards oil a matter of national security. So while we all ought to be thinking about and working on ways to use less fossil fuel so we can get ourself off the teat of dysfunctional foreign regimes, why is Congress acting against our national security in this critical area?
First they vote to create a $100,000 tax break for people who buy large SUVs (more on this to follow), yet at the same time, limiting the tax break for people who buy fuel-efficient hybrids to just $2,000. Now, as part of the most recent energy bill, Congress is actually limiting the number of hybrid tax credits that will be available, while leaving the unlimited SUV giveaway untouched.
This is obscene, and I have anecdotal evidence that it works exactly the way you might fear. Here's how it works. The giveaway goes to vehicles classified as trucks (which all large SUVs are) for companies even as small as one employee; in other words, a sole proprietorship. The purchase price has to be no lower than $50,000, and can be up to $100,000. So let's say you're starting up a tree-trimming service, or you're a building contractor, or a surveyor, or whatever. Do you go by a utilitarian pickup truck or some other smaller and more economical vehicle? Or do you buy your self a huge, gas-guzzling Ford Excursion, Cadillac Escalade or Hummer H2, and write the whole thing off, even if you use if for personal purposes at the end of the day.
My accountant told me she was advising all of her small-business customers who needed to buy a vehicle to take advantage of it because it was a way to get yourself into a really nice vehicle, virtually for free. And I know two small-business people, one a real-estate broker who bought an Excursion, and the other a tree surgeon who bought an Escalade, who took the government up on this. They both told me it was a no-brainer. They get the nice ride, the government pays the bill.
And the Saudis finance terrorists with what they spend on the gas.