http://www.enn.com/news/2003-06-26/s_5781.asp
Oregon moves to claw back Bush's big SUV tax break 26 June 2003 By Lee Douglas, Reuters PORTLAND, Ore. - In a backlash against sports utility vehicles, Oregon is seeking to pass a law that would make buyers of big SUVs pay more in local taxes if they claim them as a business expense in their federal tax returns. At stake is a federal tax loophole that lets small business owners reduce their taxable income by as much as $75,000, a limit that was recently raised from $25,000 under the tax cut legislation President Bush signed into law last month. Oregon legislators, who are grappling with a $2 billion budget shortfall, said the federal SUV tax break is costing the state valuable tax income worth some $750,000 a year. Jackie Dingfelder, one of the bill's sponsors, said Wednesday that the bill only disconnects Oregon from a federal law that is abused by business owners. "It makes good public policy for a number of reasons," Dingfelder said. "It encourages people to buy vehicles that create less pollution, and it puts money back into the state coffers. It's a win-win." Under the proposed legislation, which is making its way through Oregon's state Senate, businesses would be required to report triple the amount of their federal tax write-offs as income when they file their local tax returns. The state law, if passed, would take effect from 2004 and apply only to larger SUVs rated over 6,000 pounds. Farmers and construction workers would be exempted, Dingfelder said. Auto dealers said the state's proposal was full of "smoke and mirrors" and said the bill would harm business growth at a time when small businesses are struggling. "The whole idea of the federal government is to increase spending right now to quicken economic development," said Monty King, executive director of the Oregon Independent Auto Dealers Association. "Probably the worst thing about this is it points to Oregon and says they're against small businesses; they don't understand small businesses," King said. The bill is now before the Oregon Senate's Revenue Committee. Source: Reuters ------------------------ Yahoo! Groups Sponsor ---------------------~--> Get A Free Psychic Reading! Your Online Answer To Life's Important Questions. http://us.click.yahoo.com/Lj3uPC/Me7FAA/ySSFAA/FGYolB/TM ---------------------------------------------------------------------~-> Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuels list archives: http://archive.nnytech.net/ Please do NOT send Unsubscribe messages to the list address. To unsubscribe, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
