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A $179.60 COUPON FOR A NEW E-85 CAR
January 13, 2006
Clinton Republican Steven Olson proposes to allow a $2,000 Iowa-only tax deduction for purchases of new non-business cars that use E-85 fuel.
What basic rules of good tax policy does this bill (HF 2052) violate?
- It makes taxpayers do a different computation on the federal return than the Iowa return, making life harder.
- It's not obviously computer-enforceable, so it would require an examination to determine if somebody is lying.
- It tries to make the tax law do something that it shouldn't do - make people buy E-85.
Maybe the maximum tax savings of $179.60 will help compensate the owners for the extra fuel they will burn looking for a gas station that carries E-85.
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Comments
They can drive to Minnesota for gas. They have E-85 everywhere. But it is my understanding that it will become more widely in about 10 years here in Iowa.
Posted by: Brent | January 13, 2006 9:59 PM