Call it a loophole you could drive a truck through. Although tax write-offs for most business vehicles have long been limited in an attempt to prevent taxpayers from subsidizing luxurious rides, the squeeze doesn't apply to "light trucks" -- including SUVs that weigh 6,001 pounds or more loaded (many do) -- or cars that tip the scales at 6,000 pounds empty (good luck finding one). Buy a heavyweight for your business and you can "expense" it, meaning you deduct at least part of the cost right away rather than being constrained by limited depreciation write-offs over a number of years.
The amount eligible for expensing was supposed to be $25,000 in 2003. But the new tax law bumped up the limit to $100,000. So if you buy a $71,000 Range Rover this year for a business, you can expense the entire cost. In the top, 35% bracket, that basically means Uncle Sam picks up $24,850 of the tab.
But if you buy a piece of working-class crap, the magic of Bush-expensing doesn't work as well for you. It has to be an expensive guzzler to get the fullest financial benefit: "Besides the Hummer and Range Rover, SUVs that make the list include the BMW X5, Chevrolet Suburban, Lincoln Aviator, Mercedes-Benz M-Class, Porsche Cayenne and Volkswagen Touareg."
Meanwhile, jobless rates and the costs of medical care and college tuition skyrocket — because Republican policymakers don't regard funding the quality of Americans' lives quite as highly as funding a businessman's Hummer.
