The Incredible Shrinking Tax Cut

by Sean

For the consumer anyway…

Like I warned back in January, if you were planning on buying that Toyota Prius and taking advantage of the hybrid vehicle tax break, you better get going or you’re about to lose $1,575 of that credit. Toyota just hit a production level of 60,000 on eligible vehicles, triggering a 50% reduction in the available tax credit for any of their hybrid vehicles sold starting in October.

Oh, and don’t think, “Well, I’ll just wait until next year when the credit gets reset…” Nope, sorry, it doesn’t work that way. In fact, it’s only going to get more pitiful – after a company hits that 60,000 limit, the credit on it’s vehicles drops to 50% of the max for six months. And then down to 25% of the max for another six months. And then it’s gone.

Meanwhile, I see the traditional energy providers are still getting all kinds of assistance. You know, I say, once you hit a billion (give or take a few billion) in profit for the quarter, it just might be time to wean you from the government teat. But maybe that’s just me…

[On preview, I see Jim over at Blueprint for Financial Prosperity has some thoughts on this as well, along with a writeup of the current tax credits available per model...]

[tags]hybrid,taxes,credits,oil,Toyota,Prius,corporate welfare[/tags]

  • http://www.bargaineering.com/articles jim

    Thanks for the links buddy, it’s unfortunate the tax breaks are disappearing…

  • http://sayanythingblog.com likwidshoe

    You’re completely backwards on both fronts.

    One the first front, the “hybrid vehicle tax break” is not a “tax break” in the traditional sense at all. It is a “tax credit“, which is just a nice way of saying that it is a government subsidy. The irony is that this subsidy rewards you for buying a vehicle with a questionable energy savings while stating that it’s purpose is to encourage energy savings. Quinn’s First Law in action.

    On the second front, a tax break is nothing more than letting that someone or some entity keep their own money. I doubt you would consider a hypothetical case involving a robber who decides not to target your house as “assisting” you. “Assistance” implies a connotation of someone or some entity helping another. A robber who decides not to rob your house isn’t giving you “assistance” anymore than a government who doesn’t tax you.

    I think that it time to wean these hybrid vehicle tax subsidy recievers from the government teat. But maybe that’s just me…

  • http://www.irregularpayments.com Sean

    Well, of course I know it’s a tax credit (and I’ll hazard to speak for Jim and say that he likely does as well), as it says later in the line containing the term “tax break”:

    you’re about to lose $1,575 of that credit

    I’m not sure what you’re definition of a tax break is, but mine would contain credits in it.

    As an aside, I don’t personally see the credit as being meant to encourage energy savings. I view it as encouraging energy efficiency research. But I can see how you could see it that way, and that may even be the rationale those championing it present.

    And pulling out Quinn‘s laws as if he’s an authority on anything outside of oh-so-important realm of conservative talk radio? Geez, why don’t I scrape up some equally pointless Al Franken tripe (though I wouldn’t have a clue what his thoughts would be since I don’t listen to that crap either)? This conservative/liberal circle jerk blather drives me batty… ;)

  • http://sayanythingblog.com likwidshoe

    Nice ad hominems Sean. Way to bolster your argument.

  • http://www.topgreencars.com/ fast hybrids

    hybrid vehicle tax break is not a real loss as hybrid cars serve you better and its good for the environment..it preventing you from any further losses

    fast hybrids´s last post:Chevrolet Volt Named 2009 Green Car Vision Award(TM) Winner

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