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Stimulus Bill Includes Tax Breaks For New Vehicles

Agent009 submitted on 2/12/2009 Official Bell & Ross Timestamp: 11:49:57 AM

21 user comments | Category: Misc News | Source: | SOURCE: www.detnews.com

House and Senate negotiators agreed on a $789 billion stimulus bill that includes a scaled-back tax break to buy new vehicles.

The $11 billion provision sponsored by Sen. Barbara Mikulski, D-Md., was to make sales tax deductible as well as the interest paid on auto loans deductible on new vehicles of up to $49,500. The National Automobile Dealers Association said the buyer on a $25,000 would save $1,500 on average. The scaled-down tax break is now worth about $5 billion, said Sen. Ben Nelson, D-Neb., one of the negotiators of a compromise. The proposal passed the Senate last week on a 71-26 vote.

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Stimulus Bill Includes Tax Breaks For New Vehicles

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Agent009

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User Comments

iLexus

Lol! Thats true but I would love a tax break and I plan on buying a 2010 model year car in decemdeber just in time for the winter sales event and it will not be an american car.....

— iLexus (View Profile)

Posted on 2/12/2009 2:10:23 PM | reply to this comment | Votes: -1   

Badgewhore

I hope this only applies to foriegn cars, we're already being forced to pay for american cars we didn't want to buy.

— Badgewhore (View Profile)

Posted on 2/13/2009 1:12:53 AM | reply to this comment | Votes: 0   

1UAW

Should be for only cars BUILT in America foreign or domestic so that it helps America and the American workers.

— 1UAW (View Profile)

Posted on 2/14/2009 8:37:03 PM | reply to this comment | Votes: 1   

veyron1001

Agreed but this would only benefit Japan and Europe so I doubt the govt will allow this. I just cant see how they will let a Suburban get a tax break. Also the best break is when a car is around 2 years old when all of the mark ups, attention towards the vehicle, and the fees are gone and then some.

— veyron1001 (View Profile)

Posted on 2/12/2009 3:39:09 PM | reply to this comment | Votes: -1   

Badgewhore

They already have tax breaks for green cars. Plus green cars is bad for the economy, it has the same economical effect as building cars that last a super long time. Energy waste is BIG money, we need to get back to huge SUVs again. Exxon mobil made almost 80 billions in profit last year. This year they'll have to settled for just a few measly billions, people are gonna get laid off.

— Badgewhore (View Profile)

Posted on 2/13/2009 1:18:29 AM | reply to this comment | Votes: 0   

veyron1001

Wow you would be the first person to defend an oil company I have seen yet.

— veyron1001 (View Profile)

Posted on 2/13/2009 10:22:32 AM | reply to this comment | Votes: 2   

Ricks2Dogs

iLEXUS...When referring to American, please don't say american. You've already made enough enemies with your name, your picture and your favoritism.

— Ricks2Dogs (View Profile)

Posted on 2/12/2009 6:32:09 PM | reply to this comment | Votes: 2   

finishline

I'm struggling a bit with this "Buy American" issue right now. I'm in the market to buy new. I shouldn't consider a Honda, even though I live next to the engine plant in Anna, OH and the assembly plant in Marysville that builds Civics and Accords and TLs and RDXs? More people around here are employed by Honda, I'd guess, than Chrysler or Ford. I don't know. I want to do what's best for this country.

— finishline (View Profile)

Posted on 2/12/2009 6:50:59 PM | reply to this comment | Votes: 1   

toolatetorace

You do gave a valid point . When you do buy an American owned nameplate you are helping the companies that make the components that go into the making of an automobile . Sylvania , Safelite glass, Federal Mogul, Raybestos US steel , Goodyear and also companies that make the weatherstripping, upolstery wiring harnesess . These people are hoping to keep employed so they can make their mortgage and keep from forclosure . Something that this country does not need more of . I understand living near where Hondas are produced can pull you towards thier product line to feel a civic duty . There many more people in this country hoping that the US automakers survive so they will have jobs tomorrow plus keeping the profits in America Toyota even said in one of thier TV ads " assmebled in the USA " meaning many of the forementioned companies and suppliers would not be needed since they have their own suppliers from their own country

— toolatetorace (View Profile)

Posted on 2/13/2009 10:01:21 PM | | Votes: 1   

veyron1001

Just buy a Honda. The American auto industry has let every American down.

— veyron1001 (View Profile)

Posted on 2/14/2009 10:19:31 AM | | Votes: 0   

1UAW

Buy a ANY car BUILT in the US by any automaker and forget about the ones built overseas this goes for any Domestic car built in Mexico or Korea.

— 1UAW (View Profile)

Posted on 2/14/2009 9:25:29 PM | | Votes: 1   

kablaam

You do realize that if Johnson/Johnson, Coca Cola, McDonalds etc. had the continual profit margin of Exxon Mobil, they would be bankrupt.

Exxon has a profit margin of 9% vs 20+% of other run of the mill companies, the fact that they sell ALOT of gas, or refine ALOT of oil shouldn't make them evil.

Yes, it appears exorbitant and unfair but if you dig a bit deeper, you will see that they are making a fair profit, IMO. If they had a profit margin of say 50%+ continually YOY, then I would say -besides buy the stock NOW- that they were taking advantage of the circumstances and should be stopped.

— kablaam (View Profile)

Posted on 2/13/2009 6:07:20 AM | reply to this comment | Votes: -1   

holmstar

Here's the thing... I agree with you that as a company they have a right to try to make a profit. The problem with the oil industry though is that almost every other industry in the country is dependent on their product in one way or another. Higher oil (and natural gas) prices effect the cost of almost everything we do. Frankly, society cannot currently afford to give oil companies large profit margins. It would literally kill the lower class due to poverty.

— holmstar (View Profile)

Posted on 2/13/2009 11:28:46 AM | | Votes: 2   

kablaam

So then what is fair?? Or maybe the government should tell private companies how much profit they should make? 2% maybe? Then how much can the company afford in terms of employee raises etc.? See the negative cycle that causes?

I have no problem paying someone 9% profit on goods bought. You name 1 business in America, or the world for that matter, that would survive on say, 2% profit, YOY. That would limit RD, expansion, reinvestment,hiring,employee salary and benefits etc.

Sorry but I think Exxon's 9% profit on revenue is fair.

P.S., how much do you think the markup was for the shirt you are wearing? Or the pizza pie you bought last saturday?
Or the internet service you are using? etc. Stop being obsessed with the nominal figure, its futile.

— kablaam (View Profile)

Posted on 2/13/2009 11:44:25 PM | | Votes: 0   

3pointstar

Shouldn't matter what country the car came from. The intent is to get people in the showrooms and spend money. If I buy a BMW from Germany, there are plenty of Americans who will benefit from the purchase. BMW corporate will see their sales improving and may decide to add more staff as a result. Those people that work for BMW in the States will go out and spend because they see healthier traffic in the showrooms. This in turn will help local economies and so on. I do think that the spending bill is weighted in PORK fat and didn't need to be as large. Any economics major would tell you of the multiplier effect and how an incremental dollar can grow to make a substantial impact in the economy.

— 3pointstar (View Profile)

Posted on 2/13/2009 7:41:52 PM | reply to this comment | Votes: 0   

1UAW

In that case ALL other countries should do the same, and also ease the unfair trade policy at the same time until then the bill should be limited to cars MADE in the US only no matter the automaker.

— 1UAW (View Profile)

Posted on 2/14/2009 8:41:45 PM | | Votes: 1   

1UAW

In that case ALL other countries should do the same, and also ease the unfair trade policy at the same time until then the bill should be limited to cars MADE in the US only no matter the automaker.

— 1UAW (View Profile)

Posted on 2/14/2009 8:41:54 PM | | Votes: 1   

1UAW

In that case ALL other countries should do the same, and also ease the unfair trade policy at the same time until then the bill should be limited to cars MADE in the US only no matter the automaker.

— 1UAW (View Profile)

Posted on 2/14/2009 8:42:13 PM | | Votes: 1   

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