A Hummerdinger of a Tax Loophole?

"Thanks to the Bush administration's recent economic stimulus package, small businesses and the self-employed are eligible to deduct the entire purchase cost of new equipment up to $100,000 the year of the purchase." But these provisions are supposed to help farmers and small-business owners buy equipment to transport merchandise and haul stuff. No matter. "The Hummer H2 qualifies for this IRS Sec. 179 deduction by its gross vehicle weight of over 6,000 lbs. Cars and medium sized SUV's don't qualify for this deduction," Thorpe writes. "If you are seriously considering acquisition of a new vehicle, step up to the vehicle that can take you where you want to be, financially and otherwise."

So is this pitch working? Oh, yes. Since the letter went out in August, Thorpe estimated his Anchorage dealership, the only one in the state, has sold an additional 35 Hummers at $62,000 each. That's pumping serious money into the local economy, a most substantial stimulus indeed.

Thorpe said he sold perhaps "nine in one month to doctors" who bought them pretty much for the tax benefits. Local buzz is that they're mostly leaving them in the garage, or their wives are driving them around. Lawyers and small-business owners have snapped up the cars -- which get a whopping 10 miles per gallon -- and, given Alaska's rough winters and formidable terrain, no doubt will make great use of them this winter.