U.S. Representative Mike Rogers has proposed a bill to stimulate new cars sales by allowing for consumers to deduct $7,500 from federal taxes on the purchase of a new card. The bill would allow for $7,500 for the first three months, $5,000, and $2,500 for the next three months. Is this what will jump start the car industry again, or will this just add to more consumer debt? If GM, Ford, and Chrysler continue to give out incentives the actual price of a 2009 model car could drop significantly with this new tax break. Would you be tempted to buy a new car if this bill passed? More can be found on the AP article here.
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{ 2 comments… read them below or add one }
I hope this tax deduction is for purchasers of American auto and machine manufacturers, only. This will hugely enhance the jump starting of our country’s economy. The worst for this type of “stimulus” will, within 6-9 months, stall further growth in unemployment. The unquestionable effect will be to reestablish and enhance sales of new American made vehicles, “Daah!” Obviously this will trickle down to all supporting industries. Additionally, this type of assembly work could put a greater number of work challenged individuals back on the SS, Medicare and income tax payrolls. Since taxpayers are paying the bill for this “bailout”, our Congress should determine minimum and maximum pay scales and benefits as these workers need to be paid for an honest day’s work and not just a Union described job assignment/description.
I challenge Congress to abolish the Auto Workers Union for all the corrupt and inflationary horror realities encountered. There are additional and immediate benefits to workers and taxpayers alike. There will be instantaneous savings to the workers for dues. The tax payers would better use a major portion of those dues to defer some of the workers benefit costs. Have workers establish their own 401K just like every other successful public and private company.
This Auto industry incentive will also enable our President’s stated desire to retool our idle manufacturing plants into manufacturers of products related to alternate energy, solar, wind etc. This affords us a fantastic opportunity towards reestablishing the US as a reindustrialized exporter – of alternate energy associated products.
@ Valentino
It would be wonderful if the auto makers used the tax incentives to create alternative energy cars such as the Volt. These cars will create other businesses that make parts and accessories for the Volt and create more jobs. I’m not a fan of buying a new car, but if this $7,500 passes, it would be great to see the money put towards creating more alternative vehicles. If American auto manufacturers could create more hybrids to compete with the Prius, they could be in a much better position in 2010. The Volt has much riding on it and if they could create a hybrid full size pickup like the F150 that would be a huge jump for the auto industry.