As I type this, Congress is debating various components of a new energy bill.

I thought about postponing this week's rant until I had a new short sighted, special interest driven compromise to rail on about, but decided to plunge ahead and rant about an old short sighted, special interest driven piece of the tax code that's been on the books since 1984–the so-called Hummer tax loophole.

Here's how NPR's Andrea Seabrook introduced her conversation with Ed Markey, chairman of the House Select Committee on Energy Independence and Global Warming, on All Things Considered the other day:

Some people buying very large SUVs have been getting more than just a gas-guzzling, eye-turning luxury symbol: They've been getting a federal tax break.

The so-called "Hummer tax loophole" was created in 1984, when Congress tried to crack down on how much money could be written off for luxury vehicles used for businesses. The law excluded vehicles with a weight of more than 6,000 pounds, in an effort to keep expensive, heavy-duty equipment affordable for businesses that depend on them.

But many SUVs top out at well over the weight limit. That has allowed small-business owners and the self-employed to claim tax deductions of upwards of $25,000 for large luxury vehicles that may not have been a necessity for their businesses.

Representative Markey offered the following responses to two key questions:

What would eliminating the Hummer loophole accomplish?

If the Hummer tax loophole wasn't on the books, people would not decide, on the recommendations of their accountants, to buy the bigger vehicle because they got a bigger tax break. It would be a level playing field, and all vehicles, including hybrids, would be in a better situation to compete against Hummers, because the tax depreciation schedule would treat every vehicle equally.

Will changing the law really affect the sale of SUVs?

There will be much less of a financial incentive to purchase the larger vehicle, since smaller vehicles — the hybrids — will now be on a level playing field. There is a very high likelihood that people will no longer have this extra bias toward the larger vehicle because they're saving money.

What's more, Markey estimates that an even tax-depreciation schedule across the board for all vehicles would save the federal budget $4 billion over a five-year period.

What is it about our society that can't see the forest for the trees? How on earth did our lust for status symbols and our myopic affinity for tax breaks lead us to the point that something as ludicrous as the Hummer tax loophole is even on the books–much less a part of the current debate over national energy policy?

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