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MAY 3, 2004 – Police forces are
being cut, community college tuition is being raised 40%, county
hospitals are losing funding. All across the state of California,
massive, painful cuts are taking place because of the massive state
budget deficit’s trickle down effect.
In fact, California voters just had to
vote for a $16 billion borrowing measuring just to cover the budget
gap from last year – and they have no idea how they are going to
cover that $16 billion for this coming year. Painful cuts to even
the most vital basic services are occurring, tax hikes are being
considered.
And yet in the midst of all this, on
Governor Schwarzenegger’s watch, a the state of California is
writing checks for thousands of dollars and handing them to anyone
who buys – get this – a Hummer. Yes, while police forces are being
cut back, hard cash is being handed to anyone who buys vehicles that
are recreational toys and which are about the worst polluting
vehicles on the planet.
All of this centers around a tax
loophole meant to help farmers.
As California tax law currently exists,
any vehicle that weighs over 6,000 pounds is fully tax deductible.
Even more, the owner can fully depreciate it in the first year,
claiming all of the tax benefits right up front.
The law had good intentions –
previously, only farm or business equipment weighed over 6,000
pounds. But then along came the Hummer.
As it exists, the law does not specify
to what type of vehicles it applies or for what use the vehicle must
be purchased, and so across the state Hum V purchasers – the very
ones Schwarzenegger helped inspire to buy the vehicles – are
deducting the full value of their vehicles and getting big, fat tax
refund checks sent to them.
It would figure that with Arnold running
the state Hummer owners would be getting a leg up while police,
college students, and everyone else in fact is getting the shaft.
And yes, this scam is common knowledge among the
Schwarzenegger-supporting, Hummer-buying crowd (how do you think we
found out about it?) And, disgustingly, they have no qualms
exploiting the loophole, taking the cash, and letting the scam
continue on.
This is sure to be a bombshell about to
explode right in Schwarzenegger’s face as our report gets picked up
by the rest of the media and politicians in the state who will froth
with fury. If you are living in Cali, you might just want to call
your local Congressperson or state representative’s office and share
a view or two on the topic.
NOTE: Since writing this article, we
have heard from one of the larger car dealers in the state, who has
informed us that it is soccer moms and well as off-roaders who are
abusing this loophole, as there are certain Volvos, Lincolns, and
other luxury vehicles which weigh enough to take advantage of this
rule. As he told us, the knowledge is so out there among this
Hummer/Volvo crowd that he has customers simply coming in and
inquiring about it as they car shop (without conscience or regard to
morality) - and yet we are the only press outlet reporting it.
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