HDTV tax deduction: why not?
All the brouhaha over the DTV transition date legislation and good commentary over "should the government help those financially challenged" with subsidies has us thinking. Did the government ever consider implementing a tax incentive to move folks from analog to digital? Should they have? Without getting into the politics and economics of it too much, it's a known fact that the government uses the tax structure to sway the public's decisions.
Not that I needed the incentive from the government, but with the high gas prices last summer, I traded in a gas-guzzling V8 for a hybrid vehicle for example. What's the incentive, aside from less trips to the pump? How about a tax deduction of up to $2,000 in 2005; even more in 2006. I'll be insulating my garage this year too. I've lived with the cold for some time, but in 2006, the government will provide a tax credit of up to $500 for energy-saving purchases; 10% of your qualified expenses.
This isn't meant to be story on the history of how tax incentives influence your decisions; let the above serve as simple examples of how the tax framework and influence purchase decisions. So why don't we have the same for DTV? It's probably cheaper for everyone involved to have the $80 subsidies for analog to DTV converters, and that's likely the answer for why there are no tax incentives for DTV purchases. This is a missed opportunity, however, to help folks make the transition. A sliding scale could have been used to provide the maximum tax benefit for those in lower income brackets, while the incentive phases out for those who can more easily afford a new TV set.
What do you think: good idea or missed opportunity? Would a tax incentive on DTVs sway your purchasing decisions or is the DTV transition date enough of an incentive?
