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From NBC news World Headquarters in NY, this is NBC Nightly News with Tom
Brakaw.

**** A new big tax cut on SUV *****

President Bush is set to sign the big new tax cut bill tomorrow. And within
its provisions as a loophole that could bring a windfall to makers and the
buyers of big SUVs. Here is NBC’s Nora O’Donnell.
It’s the hottest new SUV on the market. And the guys who sell it just got a
big boost from congress! Why? Because the new 350 billion dollar tax cut bill
gives small businesses a huge tax break for buying vehicles like this.
Tad Drascloe sells the popular HUMMER.
“If a business man comes in and asks us about the new tax laws and what
vehicle’s qualified, we’re going to show him the Hummers”
The tax cut raises from 25.000 dollars to 100.000 dollars. A deduction that
was already in place for small businesses to buy equipment and vehicles! The
tax break was originally intended for farmers to buy trucks and tractors. But
the law was written in 1986 to cover vehicles over 6000 pounds at a time when
no one ever dreamed that super-sized SUVs would roll the road.
Environmental advocates say the tax break is a disaster because it
subsidizesgas-guzzlers! Tax watchdogs say it encourages irresponsible spending
and drains revenue.“We have a lot of businesses, doctors, lawyers,
accountants who potentially might need a vehicle for their business. But they
don’t to have a massive SUV and they’re using this as an excuse to buy them”

But businessman like George Katura who had planned to buy a used sedan for his Michigan real estate business decided it was worth it to upgrade. “I’ve had clients have a meeting with me, discuss the tax situation and leave my office and drive to car showroom to buy one of these vehicles” But carmakers lobbied hard for the provision and had the backing of the White House!
“We think small business need every advantage they can get today to invest in their businesses” A boom for small business owners that, by one congressional estimate, will cost taxpayers at least 1.3 billion dollars over the next 10 years!
Nora O’Donnell NBC news Washington!

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