I drive a Range Rover – the third one I have owned. Range Rovers are terrific vehicles; luxurious yet tough when the road gets challenging. They are also incredibly expensive. It’s easy to pay $80,000 to $100,000 – depending on the model. So expensive, in fact, that I would not buy one if the United States were not willing to subsidize it. That’s right – we hear a lot about tax breaks for the rich, and here’s a great one, the Range Rover Deduction. Here is how Range Rover promotes it on their site:
A great addition with greater deductions:
ANNOUNCING 100% TAX DEPRECIATION ON
SELECT LAND ROVER AND RANGE ROVER MODELS.
The botttom line here; since a Range Rover is so heavy, it the world of bizarro tax code it technically qualifies as a piece of farm machinery. If you buy it as a business, you can depreciate 100% of the vehicle right away, so that $80,000 SUV “after-tax” is priced a lot closer to the competition.
I can’t help but wonder how this deduction helps America? Range Rover is owned by an Indian company. If there were not such a terrific tax incentive to buy a Range Rover, I might be compelled to buy one of the new American SUV’s that look so good right now; perhaps a decked-out Jeep or Ford Explorer. I also wonder if it is advisable to incentivize the purchase of really heavy vehicles that get terrible gas mileage?
But in America where we honor the rich, the people have chosen to help me buy the most luxurious SUV available. And many Americans who could never afford to buy a Range Rover are happy to fight to the death my right to get huge tax incentives to live large! Repealing the Range Rover deduction could be construed as a tax increase, which would upset “job creators” like me, and if I had to drive a Jeep I might not be as motivated to help get the American economy moving.
If you want to see a lot of beautiful Range Rovers, I would suggest visiting private airports where people with private jets house their aircraft. If you think the Range Rover deduction is extreme, wait until I tell you about the private jet tax deduction!