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Discussion Starter · #1 ·
Note that this is a credit, not a deduction. Your tax dollars at work.

Buyers of Volkswagen Jetta TDI vehicles eligible for a $1300 Federal Tax Credit

HERNDON, Va.-Volkswagen of America, Inc. today announced that buyers of the Jetta TDI sedan and SportWagen are eligible for a $1,300 Federal Income Tax Credit.

The Internal Revenue Service has issued a certification letter affirming that the vehicles qualify for the Advanced Lean Burn Technology Motor Vehicle income tax credit.
 

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Here's a better source than using a post in a 3rd party forum

"Your tax dollars at work" are used to try to get people excited about 38 mpg city/44 highway. I personally hate diesels in a small car, and won't be buying one. Hybrids had/have tax incentives too (Ford Escape and Mercury Mariner had decent credits, along with Prius, Civic Hybrids etc).
 

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It never ceases to amaze me how people's ideologies are on here.

If GM, Chrysler, or Ford offered cars that did that at the same price or less, they'd be getting the same treatment from the U.S. Government. To pretend that this is some subversive bias against domestic cars seems utterly ridiculous to me. Hyper-paranoid almost.

We need to get beyond looking at this as a "domestic" vs "foreign" thing. This is an Earth thing. I for one think it is wonderful they are offering credits to people who drive efficient vehicles, even if they are domestic. I'm not environmentalist by any means, but I don't see a future for myself driving a car that doesn't get at least 30 miles a gallon on the highway, if not higher.
 

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Why the hell don't I get a credit for the mighty KIA Spectra (plural of Spectrum)?? Huh? :confused:
 

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Ethanol subsidies make the E85 for them available and relatively inexpensive. That's your tax incentive, that only applies if you're actually using less gasoline.
Right, the feds subsidize ethanol to the tune of 51 cents a gallon, and on top of that many states wave their fuel tax. That doesn't include the several $billon spent on direct/indirect subsidies for agriculture, E85 CAFE loophole, etc.
 

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Please bear with here, and let me play devil's advocate.

Is it possible GM chose to use lobbyists to look out for GM's own good (CAFE/E85), as opposed to hybrid/clean diesel lobbyists that fought for consumer's benefit (tax credits for those who purchase)?

Just thinking out loud....and again, I don't know everything there is to know about politics, so be easy on me. :yup:
 

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Because the The Gubmint hate KIA, that's why. It brings back ugly memories of Viet Nam.
Call it VIK. Can't we all just get along? :)

Besides, Vet Namm is not Korear. It's similar to nort Korear, though. :eek:





Meanwhile, my team of crack attorneys will be working on the lawsuit. :yup:
 

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Discussion Starter · #16 ·
Are you saying fuel efficiency tax credits shouldn't exist, or they should only apply to domestic cars?
Considering that almost all small cars currently are sold out, I am not sure why we need to create waiting lists. But if the government is going to pay people to buy cars, then, yes, the cars should be designed, engineered and manufactured by the people paying the subsidy. It is obscene to tax an American factory worker and use his money to pay people to buy his competitor's product.

Also, it is rather silly to subsidize particular technologies, rather than the results. Why subsidize clean diesels if better mileage can be had from a 1.4L turbo DI 4 cylinder gasoline engine.

At the end of the day, the goal is to use less fuel. If person A buys a Jetta diesel and drives 20,000 miles per year, and person B buys a Malibu, rides the bus to work and does not drive around the country on vacations, why not pay person B since he used less fuel?
 

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True. But it does not explain why I am paying people to buy German cars.
Technically, you're actually paying people to help conserve fuel and make America cleaner.

If that end is reached through buying a German car, then so be it.

US automakers are completely free to make a similar vehicle (in fact, they already do - overseas) and sell it with the same benefits.

If you were in charge, tax credits would be restricted to domestic vehicles? Just asking out of curiosity. Or would there be no tax credits at all? (which would actually make sense, too)
 

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Discussion Starter · #19 ·
Technically, you're actually paying people to help conserve fuel and make America cleaner.

If that end is reached through buying a German car, then so be it.

US automakers are completely free to make a similar vehicle (in fact, they already do - overseas) and sell it with the same benefits.

If you were in charge, tax credits would be restricted to domestic vehicles? Just asking out of curiosity. Or would there be no tax credits at all? (which would actually make sense, too)
I would not use the tax code to manipulate car purchasing decisions in an effort to conserve energy. Here is the problem with the current law. Let us assume that before this law passed, VW sold 100 diesel Jettas. After the law passed, VM will sell 110 diesel Jettas. So the law prompted 10 people to buy a diesel Jetta. Yet ALL PURCHASERS will get the tax credit. That means that the U.S. is paying -- not $1,500 per new fuel saving car on the road -- but $16,500 per new car on the road! (Do you have any reason to think that Jetta diesel sales will increase by more than 10% given the price
of diesel fuel?)5
If you think that is good use of tax dollars, I ask you to stop voting in elections.

The government does not have money to spend like this. If the government wants to reduce energy consumption, there are ways to do it that do not involve selling bonds to China and paying interest for 30 years. If the politicians had any guts and intellectual integrity, they would raise taxes on fuel. It now is beyond dispute that higher gas prices will reduce consumption more efficiently than handing out $1,500 checks to people who unquestionably can afford to buy new Jettas anyway.

I would propose that the new tax income be used to eliminate other excise taxes (such as on tires) or pay it to the states so that the states do not have to charge its citizens for drivers licenses and plates.
 

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So what about the tax credit with the Volt...?
No doubt about it, the Volt will come with some type of tax credit.

I think how much will depend on what kind of fuel savings we're talking about...it's still ~2 years away.
 
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