Tax credit reduction

check out this link

http://hybridcars.about.com/od/news/a/hybridtaxcredit.htm

 

Does this mean I should trade my 05 in for an 06 in January to get more money back??

 

That's assume Toyota reaches 60k in the 1st quarter.

If I were Toyota, I'll not ship/sale that 60000th car until April 1, 2006. That way the phase out period won't start until 4th quarter and more consumers will benefit from tax credit.

 

We wouldn't need to worry about tax credits if we adopted the Fair Tax

What is the FairTax?
The FairTax is a non-partisan proposal (HR 25/S 1493) that abolishes all federal income taxes, including personal, estate, gift, capital gains, alternative minimum, corporate, Social Security, other payroll, and self-employment taxes, and replaces them all with one simple, visible, federal retail sales tax. The FairTax dramatically changes the basis for taxation by eliminating the root of the problem: Taxing income. The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. The FairTax is a fair, efficient, and intelligent solution to the frustration and inequity of our current tax system.

 

Hi macshemp:

100% credit through the calendar quarters until 60K hybrids are sold, and then one addtional quarter. Then 50% for the next two quarters.