I read an interesting article in Business Week last week about how in Germany, many company cars are Porsches. German telecom owns 38,000 vehicles for their employees. 85% of high end cars in Germany are registered to companies. In the US, the number is fewer than 20%. German tax rules have made this possible. Employees there would never buy this car for themselves, but having a Porsche for work seems to be prized and proud perk.
Perhaps the US should change its rules for small business owners?
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I do not see where this essay addresses the question in the title. Rather than telling us why our next company car should be a Porsche it implies that the U.S. Government should subsidize the acquisition of Porsches by small businesses. Do you actually hold that opinion?
Thanks for the comment…my point is that we can use a fancy car as a great perk for a valued employee
Well stated Barry. This would serve as an incentive and a “benefit” for hard working individuals. I don’t think you were suggesting that the government subsidize the program, this would go to the company, at least the bulk of it. Now the question is whether this would be a tax deductible expense for the company, and income to claimed by the employee, that is the more crucial question that has to be asked. The car doesn’t have to be Porsche.