De-Porking the Auto Industry Stimulus Package
BY JEFF BRESSLER
With many Americans wondering if a synonym for “stimulus” is “spending”, the National Automobile Dealers Association has been hard at work trying to push a true incentive package into the Senate bill that would actually help move the economy forward.
| Sen. Mikulski's addition to the package allows consumers to deduct their loan interest as well as state and local sales taxes on vehicles costing less than $49,500 and purchased before Dec. 31, 2009.
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Sen. Barbara Mikulski (D-Md.) has been lobbying to include an auto sales tax incentive in the stimulus package. Sen. Mikulski's addition to the package allows consumers to deduct their loan interest as well as state and local sales taxes on vehicles costing less than $49,500 and purchased before Dec. 31, 2009.
With automakers in dire straits and needing to sell vehicles, I can think of no better way to jump start auto sales. The provision would save car buyers about $1,500 on a $25,000 vehicle. That is substantial, and when matched with dealer incentives could result in some great savings for car buyers. With the potential provision scheduled to run out at year’s end, there would be immediacy for buyers to purchase now.
The NADA rolled up their shirt sleeves and burned the midnight oil lobbying for the Mikulski provision. I am happy to report that the hard work paid off. The Senate voted 71-26 to include the automotive stimulus in the package.
Mikulski though out of the box, unlike many of her cohorts who posses that same old, same old thinking mentality. She is to be deeply commended.
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