"Both are small-business owners who used that status to take advantage of a loophole in the tax law that allows you to purchase a $50,000, three-ton vehicle for small-business purposes, using it as a tax write-off at the end of the year. Each paid less than $4,000 for their Humvee"

So they paid $50,000 for a Hummer, and then were able to write off $46,000 of their taxes? How much did they owe in taxes??? $46,000 is WAY more than I pay as an individual. Did they get a huge refund?

Whichever, this looks an awful lot like the gov'ment subsidized their purchase. How can it afford to do that? Where does it make up that difference in revenue? WHY does the IRS allow this?

Good questions. Would love to know the answers. Since Reagan, individuals cannot even write off the interest on the cars they buy. Suggestion to those who can: Get a home equity loan to buy your car, then you can write off interest.

A business (which doesn't take much to become) that purchases anything weighing over 6000 pounds can take a deduction for a beast like this - for small company guys like me, the money comes off the top, i.e., if I earned $200,000, spend $100,000 on a decked out Hummer, and my tax liability drops to $100,000 - NO taxes on the amount spent to cruise in style - let the other American tax payers pick up the tab.

It WAS $30,000: http://www.detnews.com/2002/autosinsider/0212/18/c01-38875

"At the same time the tax code sanctions $30,000 write-offs for SUVs, prospective purchasers of a fuel-efficient hybrid vehicles qualify for a relatively small $4,000 tax credit."

... but "In 2003, lawmakers expanded the tax deduction to a whopping $100,000 as part of the $350 million tax cut package"

http://www.selfemployedweb.com/suv-tax-loophole-2.htm

It was recently "rolled back" to $25,000 (the outcry of common sense sometimes win's over).

Hummers are so ugly. Impractical lumbering vehicles.

I chose to get my 14mpg in a Mustang!