As part of the 2009 Stimulus Bill, consumers are able to deduct state and local sales and excise taxes paid on the purchase of a new foreign or domestic vehicle costing up to $49,500 that weighs no more than 8,500 pounds.
On the other hand, the federal government also allows consumers to deduct up to $25,000 on the purchase of an SUV weighting at least 6,000 lbs. Termed a Section 179 purchase, the bill was intended to assist GM, Ford and Chrysler in the sale of the more profitable large SUVs. Well it failed to prevent the bankruptcy of both GM and Chrysler, but continues to encourage Americans to buy the behemoth SUVs.
If the federal government is serious about cutting gasoline consumption and green house gases, it should first insure that current policies are consistent before embarking on passing new legislation.