READERS WRITE

CAR TAX

One-time tax targets poor, middle class

So the Georgia Legislature is considering replacing the ad valorem tax on autos with a one-time sales tax of 7 percent, capped at no more than $2,000. One only has to run the math to discover that the full 7 percent tax would apply only to cars costing less than $28,500. In fact, a person buying a $70,000 Lexus made in Japan would pay only 2.9 percent while the buyer of an Impala or Caravan made in the USA would pay the full 7 percent.

And of course buyers of used vehicles, who frequently can barely afford the low-value cars they are buying, would have hundreds added to the price tag (and thus the payments, with stiff interest, being charged by the used-car dealers ). And who is proposing this massive shift of the tax burden from the wealthy to the middle- and working classes? The Republican Party, of course.

ED UDALL, Marietta

Bill benefits luxury-car purchaser while hurting the little guy

Eliminating the ad valorem automobile tax in favor of a 7 percent one-time tax is a bad idea. It will deter new car sales by adding to the purchase price, decrease the value of used cars and with a cap of $2,000 will benefit the purchasers of luxury vehicles while penalizing the working man buying a moderately priced vehicle.

In early 2007, I purchased an SUV with a taxable sales price of $28,000 on which I paid a 6 percent sales tax of $1,680. With the proposed taxation plan, I would have had to pay a 7 percent title tax of $1,960 with no additional ad valorem tax. Through 2009 the ad valorem tax on this car has been $345 and will decline each year I own the vehicle.

Had I purchased a more expensive car at $45,000, the 6 percent sales tax would have been $2,700 and subsequent ad valorem taxes for the same period probably about $550. Under the proposed title tax, I would only pay a total tax of $2,000 for that same luxury vehicle. A substantial savings.

To offset the tax benefit for the luxury-car purchaser, our beneficent politicos propose to levy this title tax on all used-car sales. This would further hurt the little guy by diminishing the value of his used car in private sales and as a trade-in. While they say they are doing us a favor by eliminating the “birthday tax,” HB 480 is another example of a taxation policy that benefits the few while injuring the many.

ROBERT RUSH, Canton

House Bill 480 is just another GOP tax break for the rich

Come on, AJC, expose House Bill 480 for what it is: Another Republican tax break for the rich, taking a higher percentage from lower-income people who now pay no tax on vehicles purchased from individuals.

Our current “birthday tax” is common in many states because it is fair. The yearly fee is a fair charge for continued road use. Vehicles should be taxed at full selling price when sold by a for-profit business. Private-party sales should remain tax free. Anyone who can spend more than $28,571 for a vehicle can afford the sales tax and should pay the full amount.

G. RICK GILBERT, Lawrenceville

AIG BONUSES

What we are witnessing is socialism in reverse

It seems ludicrous that workers can be stripped of pensions and health care for the sake of cost-cutting by businesses in violation of longstanding contracts and agreements, yet when AIG hands out obscene bonuses, they can’t be stopped because of their legal contracts. Something is wrong with this picture! What we are witnessing (and have been for some time) is socialism in reverse. That is, the redistribution of lower- and middle-class wealth upward to a small, elite group at the top in the name of capitalistic incentive.

CHARLES REINIKE, Norcross

Congress’ reaction appalling; don’t skip judicial branch

I am one of those who, on general principles, oppose government bailouts of private business. That said, I am appalled at Congress’ reaction to the contractually obligated AIG bonuses. If a crime has been committed by those receiving them, bring them to trial.

But it is terrifying to think that Congress would bypass the judicial branch and pass a tax law solely aimed at punishing a group whose actions they do not like. To those supporting this move, consider that Congress might at some point decide they don’t like you for some reason. Be afraid.

GRADY L. ROCKETT, Snellville

Scary thought: Hiring AIG bonus-receiving executives

So we have to give bonuses to the executives at AIG so they won’t leave for high-paying jobs elsewhere. The fact that someone would actually hire these guys is the scariest thing I have heard since the recession began.

DAVID LAWSON, Decatur