Tax Benefits in The United States
Under the United States income tax code, the cost of vehicles over 6,000 pounds (2,700 kg) can be deducted from specific forms of income. This deduction was enacted decades ago to assist self-employed people in purchasing a vehicle for business use. The weight minimum was intended to limit the deduction to commercial-type trucks. For many years, the deduction remained below the average cost of a new vehicle, since large trucks were relatively inexpensive. Since it is a reduction in taxable income, the actual value of this deduction averages 30% of the price of the vehicle in question.
The increasing popularity of these commercial vehicles in the last decade, however, pushed their average price to nearly double the average passenger car cost. In response, the 2002 Tax Act increased this "Section 179 depreciation deduction" to US$75,000, and it rose again to US$102,000 for the 2004 tax year. This is more than three times the current average cost of a passenger car in the United States and covers a large number of luxury models, including the Hummer H2. In late 2006, the deduction was again reduced to US$25,000 for vehicles with GVWR between 6,000 lb (2,700 kg) and 14,000 lb (6,400 kg).
Base price MSRP in 2008 for the H2 is $53,286.
Read more about this topic: Hummer H2
Famous quotes containing the words united states, tax, benefits, united and/or states:
“In the larger view the major forces of the depression now lie outside of the United States, and our recuperation has been retarded by the unwarranted degree of fear and apprehension created by these outside forces.”
—Herbert Hoover (1874–1964)
“Parents are used to being made to feel guilty about...their contribution to the population problem, the school tax burden, and declining test scores. They expect to be blamed by teachers and psychologists, if not by police. And they will be blamed by the children themselves. It is hardy a wonder, then, that they withdraw into what used to be called “permissiveness” but is really neglect.”
—C. John Sommerville (20th century)
“While greedy good-doers, beneficent beasts of prey,
Swarm over their lives enforcing benefits ...”
—Robert Frost (1874–1963)
“When Mr. Apollinax visited the United States
His laughter tinkled among the teacups.
I thought of Fragilion, that shy figure among the birch-trees,
And of Priapus in the shrubbery
Gaping at the lady in the swing.”
—T.S. (Thomas Stearns)
“The corporate grip on opinion in the United States is one of the wonders of the Western World. No First World country has ever managed to eliminate so entirely from its media all objectivity—much less dissent.”
—Gore Vidal (b. 1925)