Canadian Budget Proposes 2k Tax Cut for Hybrids and a 4k Tax for SUV's!

Canadian Budget Proposes 2k Tax Cut for Hybrids and a 4k Tax for SUV's!
Federal incentives to encourage a shift from gas-guzzling SUVs to fuel-efficient "green cars" could hurt struggling North American automakers by keeping some drivers out of the marketplace without significantly boosting sales of gasoline-electric hybrid cars, industry watchers say.

Auto analyst Dennis DesRosiers said Tuesday the Canadian government should be concerned with how automakers might react to its budget plan, which favors hybrid cars with a rebate of up to $2,000 on the purchase but puts a $4,000 tax on SUVs and other vehicles that use large amounts of fuel.

"If I was General Motors, Ford and Chrysler, I'd be real (upset). Right now, these companies are in real sensitive mode in terms of their very survival," DesRosiers said.


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EL34EL34 - 3/21/2007 2:46:16 PM
0 Boost
Canada, I turned off a lightbulb, where's my tax refund?


tecnopolistecnopolis - 3/21/2007 4:33:22 PM
+2 Boost
Clearly something has to be done about this fuel consumption issue.


S4cabriofoxoneS4cabriofoxone - 3/21/2007 7:31:48 PM
+2 Boost
This is a step forward! If only the US government thought in the same way...


chewychewy - 3/21/2007 9:31:03 PM
+3 Boost
The problem with the gas guzzler tax is that the EPA only puts it on cars with fuel economy below 21.5 mpg combined. I think that there are less than 50,000 of such cars sold each year. BUT about 8 million SUVs and pickups with even worse fuel economy are sold each year. AND not a single one has the gas guzzler tax on it. So basically the gas guzzler tax is useless as it is right now.


dumpstydumpsty - 3/22/2007 7:04:11 AM
+1 Boost
Why was the tax rebate $4k for an SUV initially? Once hybrids became reliable, there shouldn't have been a rebate for SUVs at all. The US had this silly type of rebate where business owners could write-off the cost of a large truck or SUV if the vehicle was used primarily for their business. Of course the 'loophole' was that if you used the vehicle to drive to-and-from the office, to carry company supplies or transport employees (the business-owner himself being an employee), and used it for daily duties (that could be anything); the tax write-off was approved.

You'd think the US and Canada would give tax rebates for purchasing the 'stripped-down' vehicles with the smallest engine possible in the smallest cars. So people who made the cheapest purchase would get the best government benefit for trying to use less oil and to less harm to the environment.


zorbeezezorbeeze - 3/22/2007 11:26:51 AM
+1 Boost
It's not a rebat. OMG read. It's a $4000 tax. If u buy a large SUV you pay an extra $4000 to the gov't. If you buy a hybrid or another small engined car you get money from the gov't.
BTW EL34, USA -> i want to bomb innocent countries and take all their possessions


kpaxxkpaxx - 3/22/2007 9:05:02 AM
+1 Boost
Too bad those hybrid cars are not efficient when the temperature reaches below zero! Makes no sense to buy a hybrid in most of Canada. Most of the people I know that drive hybrids get about 30mpg in the winter! They say the gas engine is always running just to keep heat in the car.


louisvuittondonlouisvuittondon - 3/23/2007 9:31:47 AM
+1 Boost
wow $4k tax, less suv on the road, cleaner air, and they have universal health care. Lets just call it the United states of canada and leave those red states to biblethumper land.


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