Showing posts with label tax credit. Show all posts
Showing posts with label tax credit. Show all posts

Tuesday, May 13, 2008

Back Scratchin'


It's city election time in Flagstaff, AZ right now. In addition to choosing a new figurehead mayor and several marginally useful council members, the good citizens of Flagstaff are being asked to vote on several propositions concerning our city bus system, Mountain Line Transit. In exchange for more frequent buses, the addition of new routes, and the switch to hybrid buses, Flagstaff voters are being asked to increase sales taxes approximately 12 cents per hundred dollars spent. This is a paltry amount for such a beneficial service, but it got me to thinking.
Folks who can afford to buy certain hybrid vehicles are given a federal and, often, state tax credit to offset the high purchase cost. (Unfortunately, for the most commonly purchased hybrids, the credit has been phased out.) A tax credit is a nice perk for those trying to reduce their carbon footprint. Herein lies the irony. Public transportation is undoubtedly the best way for Americans to reduce carbon emissions. The purchase of a Ford Escape Hybrid will earn the buyer approximately an 11% tax credit on his federal taxes while bus service will cost each tax payer (in Flagstaff) a 12% increase in sales tax plus the cost of actually riding the bus. Shouldn't we be offering some kind of tax credit to those who ride the bus? Wouldn't it be a nice incentive for those who cannot afford the price of a new hybrid? The only conclusion I can possibly jump to after spending no time researching the topic is that the powers that be don't REALLY want to reduce the number of cars on the road. We have to keep the legacy of Henry Ford alive I guess.