A reader writes:
Here is the Cash for Clunkers program that was in place during the Bush Administration. The bonus depreciation provisions put in place after 9/11 provided a 50% immediate tax deduction for the purchase of Large SUV’s. So when my boss purchased a $100,000 Range Rover he wrote off $50,000 on his taxes. Assuming a 35% federal tax bracket this resulted in an immediate tax refund of $17,500 on the purchase of the Range Rover (even though the down payment may have been $10,000). $17,500 cash for the purchase of a 12 mpg Range Rover.
Now that’s “Cash for Clunkers” we can believe in.