Wow, Wow, Wow, Bush!

[HYACK]

Did anyone else see Bush's speech today at 11:00 am EST on CNBC (while the same speech was being pre-empted at precisely the same time by the Shiavo autopsy Breaking news on MSNBC, Fox, CNN)?

Very very very Wow! imo..

First, he went right into the thing. Extremely concise. Second, the man didn't start talking about importing more foreign LNG and raising more domestic coal/nuclear (he saved that for end of speech) - Bush made Hybrids the PRIMARY platform of the strategy - an "Immediate" and urgent response to our current energy situation!! Holy mackerel!

He wants a $4,000 Tax credit (as opposed to $2,000 tax deduction??) to encourage Hybrid growth. (could someone discuss differences between such a credit vs deduction? Thanks)

Then, Mr Bush went right into absolute national need for Ethanols and Bio-diesels to offset growing demand for foreign imported oil! All this before uttering one word on nuclear, coal and Natural gas!

Man, I wish whoever got a hold of him lately, edited his policy speeches about 4 years ago

[Tadashi]

So how would this $4k crdit affect current owners? Would we be able to get the credit amount minus what we got already? I just got my Prius and have not filed yet.

[galaxee]

I would be THRILLED with a $4000 tax CREDIT. This is not thr first time he has mentioned a "credit" instead of a deduction, so I think at this point it's safe to assume that he really means to implement a "credit"

A tax credit would take $4000 directly off the amount of tax you owe. The current deduction takes $2000 off of your taxable income which for most people averages out to about $500 in savings.

This $500 savings varies greatly depending on your tax bracket so don't hold me liable for any discrepancies in your own taxes..

[rcroft]

He wants a $4,000 Tax credit (as opposed to $2,000 tax deduction??) to encourage Hybrid growth. (could someone discuss differences between such a credit vs deduction? Thanks)

Tax deduction comes off your taxable income. If your tax bracket is 25%, then you save only $500 in taxes, which is the tax you would have paid on the $2000 you deducted.

Tax credit comes off the tax you owe. So if you owe $10,000 dollars, you would only owe $6,000 after the tax credit.

Tax credit is much better than tax deduction.

[rcroft]

<div class='quotetop'>QUOTE(Tadashi\";p=\"98736)</div>

So how would this $4k crdit affect current owners?  Would we be able to get the credit amount minus what we got already? I just got my Prius and have not filed yet.[/b]

I imagine it would be a change to the 2005 tax code. Therefore, if you bought your car in 2005, you get the credit. If you bought it in 2004, then you are out of luck.

[prius04]

Actually GW has used the word credit before. However, most observers assumed that he didn't know the difference between a deduction and a credit and that he was really talking about a deduction.

Maybe he really does mean a credit, though I did not see his speech.

Actually, I don't generally watch him on TV anymore. Seeing as how what he says generally has so little in common with what he does, I figure whats the point of listening anymore.

[john1701a]

We keep hearing this same old story again. $$$ support for hybrids gets mentioned, but nothing ever becomes of it.

Don't believe this until at least a very minimum details are provided. Most notably, that "up to" qualifier is extraoridinarily vague. And remember, the Detroit automakers have been begging for this for years... yet nothing has ever materialized.

[rcroft]

<div class='quotetop'>QUOTE(prius04\";p=\"98747)</div>

Actually, I don't generally watch him on TV anymore.  Seeing as how what he says generally has so little in common with what he does, I figure whats the point of listening anymore.[/b]

Well, you could read it instead...

http://biz.yahoo.com/prnews/050615/dcw047.html?.v=12

[DanMan32]

Well, electric cars DO currently get a CREDIT, or is it any alternative fuel vehicle? So he may have meant CREDIT.

However, it isn't all up to him. It is Congress that makes the laws and tax codes.

[Sufferin' Prius Envy]

Now, how much was it that Toyota was to be raising prices?

Future Prius buyers have some investigating to do.
Is it a credit or deduction?
Will that more than cover the price increase?
What changes will be made to the ‘06?
Is the hybrid Highlander or Lexus RX hybrid now within my price range?
If it is a tax credit, will the Prius waiting lists grow to unbearable proportions?

WHAT!! No more Salsa Red before they are all gone. :wink:

[curious as to why this topic is in Care, Maintenance & Troubleshooting. We “care” but I don’t think that qualifies it for this category]