Congress recently passed a tax bill, as proposed in President Bush’s economic stimulus plan, that offers a $100,000 tax credit for business owners who purchase any vehicle weighing 6,000 pounds or more when fully loaded.
Because these rules didn’t require a business to exist for a minimum length of time or post a profit, car dealerships would help buyers spin up small businesses on the spot in order to avail themselves of the credit. SUVs flooded the market and have been a load on the national car fleet ever since.
Now we’re pivoting to electric vehicles in order to stay competitive globally, and (fossil fuel endorsed) business magazines have suddenly started poo-pooing the idea of vehicle subsidies as unnatural. Curious.
Yeah, that corporate tax credit is also why the Ford F-150 is the most commonly purchased vehicle by millionaires and billionaires. It’s the smallest vehicle able to be classified as a work truck, to qualify for tax credits. They can basically deduct the entire cost of the vehicle on their taxes, because they purchase it through a shell corporation (of which they’re the sole owner and operator.)
We’ve been subsidizing ICE vehicles for the better part of the last century. Famously, Bush Jr passed enormous tax cuts for SUVs and other “light trucks” back in 2003.
Because these rules didn’t require a business to exist for a minimum length of time or post a profit, car dealerships would help buyers spin up small businesses on the spot in order to avail themselves of the credit. SUVs flooded the market and have been a load on the national car fleet ever since.
Now we’re pivoting to electric vehicles in order to stay competitive globally, and (fossil fuel endorsed) business magazines have suddenly started poo-pooing the idea of vehicle subsidies as unnatural. Curious.
Yeah, that corporate tax credit is also why the Ford F-150 is the most commonly purchased vehicle by millionaires and billionaires. It’s the smallest vehicle able to be classified as a work truck, to qualify for tax credits. They can basically deduct the entire cost of the vehicle on their taxes, because they purchase it through a shell corporation (of which they’re the sole owner and operator.)
I answered that in the first post. Better margins on ice, thats why businesses ‘suddenly’ don’t like the current subsidies we have.