Dumb idea of the day: Hey, let’s encourage a nation in debt to borrow and buy even more!
I’m tuned to C-SPAN, keeping an eye on the Senate auto bailout/stimulus debates.
Maryland Democrat Sen. Barbara Mikulski just wrapped up her pitch for another temporary stimulus gimmick — short-term tax incentives to car buyers. Unfortunately, she got Missouri GOP Sen. Kit Bond to co-sponsor this $2-3 billion feel-good amendment. The details:
The U.S. Congress will consider legislation next week to provide temporary tax incentives to car buyers, U.S. Sen. Barbara Mikulski, D-Md., said Wednesday, part of a broad Democratic agenda to stabilize the auto sector.
Under the bill she plans to introduce in a coming lame-duck session, interest payments on car loans, and sales and excise taxes would be tax-deductible, Mikulski said. The program, which would apply to new vehicles purchased through the end of 2009, would be part of legislation designed to stimulate the economy.
Speaking to reporters at a Chevrolet dealership in Bethesda, Md., Mikulski said her proposal would “stimulate” car sales and ultimately preserve blue- collar jobs.
“It is the best way to help the American automobile industry,” said Mikulski, a member of the Appropriations Committee.
The proposal could be politically safer than a separate initiative to compel the Bush administration to spend part of the $700 billion Wall Street rescue plan on auto makers. That initiative, being pushed by Democratic leaders in the U.S. House and Senate, is also to be taken up next week.
Mikulski estimated that under her proposal, buyers of a $25,000 Dodge minivan would save $1,553. The incentives would apply to loans of up to $49,500. Households with incomes above $250,000 would not be eligible.
The estimated the cost of the proposal would be between $2 billion and $3 billion, she said.
Three quick points:
1) Now, these same Democrats who scream about global warming want Americans to buy more cars?
2) If they think these tax incentives are such good ideas, go ahead and make them permanent. Go. Ahead.
3) Spending beyond our means is what got this country into trouble in this first place. This kind of temporary political gimmickry is going to exacerbate the problem. Encouraging people to take out $50,000 car loans before the end of the year when they should be saving their money instead?
Brilliant.
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Spread the wealth baby!
So, is this dopey tax exemption only for Big-three vehicles? What if I want a Honda Fit, which is death-trappy enough to satisfy the global-warming hoaxters? Or a Toyota Prius? Can I get the rebate if I buy a big-*ss Chevy Tahoe, or is it only on the Aveo?
These people have sh*t for brains.
When am I going to get some of this money?
Does it stipulate an American car? Toyotas are made in Kentucky. Do they count?
What did Mikulski stand on when she made the announcement?
Since I will be needing a van in about 6 months, I don’t oppose this.
he’s a moderate
and good, any tax cut is a good idea…I’ll go and buy a NISSAN or TOYOTA!!! 
Heck, that was much nicer than what I was going to say.
Sen. Kit Bond’s testicals.
any tax cut is a good idea! I’ll take it!
I was thinking something taller - like straddling the roofs of two Smart Cars.
taheheheehehehee
I voted for Steele!! (actually he ran against our other Senator, Cardin–but it felt good to say that!)
Good point…which illustrates why this is all about union payback and not about what’s good for the people.
In all my years in MD, I have heard nary a peep from Mikulski on the national stage…she seems to keep getting re-elected though (don’t know WHO would vote for her)…her office has been very dismissive/condescending when I have contacted them about other issues.
I was gonna put a blower and nitrous on the minivan….but I may just buy a new car instead….
Why don’t we let the automakers print their own money as they need it?
I always wanted to get a mini and put a REALLY big engine in it, just to see thier faces….
we’ll see how it turns out…but if Detroit still has a higher price tag and less consumer interest, the gain is moot for the industry (but admittedly good for the taxpayer).
tax incentive, Throw the Old Bums Out.
I can hardly wait for April 15 to send in my hard earned money to that bunch of total idiots in dc to spend any way they please without being accountable for what the majority of the taxpayers would like done. One of these days the actual taxpayers will say enough is enough.
L
Har!!!! What idiots… they just eliminated the people with enough money to actually go buy a car.
Is this bailout orgy ever going to end? Can someone turn a light on so they can see what they’re actually doing?
I’ll buy an American car when Cadillac starts building big rear-wheel drive dreadnoughts again, like my old Fleetwood Brougham d’Elegance.
“Station the Manuevering Watch….”
China may end up doing what our Banks should have been allowed to do..
Say “No you can’t borrow any money…looking at your debt, and credit rating….America as a Country is “A Sub-Prime” loan…and we can’t take the risk.”
I was thinking of buying a car. Now, I think I’ll wait until I see how much of a tax break I can get.
As long as they are handing out money, I guess I’ll get in line.
the only reason that they have $h*t for brains is that Nature abhors a vacuum.
Screwed… again!
I’m beginning to think all the paranoid nuts are out to get me!
The sales tax is a state tax, how does the federal gov. cut that? Do they plan to reimburse the states the amount of the sales tax?
Great idea. I was thinking about trading in my pickup anyway.
Never mind, it’s deducted from your federal tax.
Yeah, make it permanent. And cut or elimenate all other federal taxes while you’re at it.
Hey! What a fantastic idea. Our wonderless congress hard at play. And at the low low price of $2, maybe $3 Billion TOPS! My next door neighbor will love this idea. . .he’s on his third bankruptcy now (just zeros out his debts when the going gets tough). These fantastic ideas have stimulated the left side (tiny as it is) of my brain and as a result I’ve thought up some other great ideas. How about we give a bunch of our surplus nuclear warheads to IRAN and save them all the fuss and bother of figuring out how to make their own, or save them the expense of buying shoddy second-rate ones from North Korea. OOORRRR, why doesn’t pres-elect Obammmer nominate Osama Bin Laden as Secretary of Defense. He sure has done a great job of defending himself against us!!! We can’t find that sucker no matter what we do. Oh, I am diverging here, back to the money. Ummm, Periwinkles Jock Strap Shop is teetering on bankrupcy here in town, how about a few million for them? And while we are at it, new Cadillacs for all the folks in congress who have been working so hard, and a Benz for Pe-louse-i. Cripes, this spending other peoples money is EASY and FUN TOO!!
I hate to be disagreeable, Michelle, but I am ALL FOR spending beyond our means at this point — just as long as our people are buying guns, ammo, body armor, explosives, canned goods, medical supplies, and petroleum products like home heating oil, gasoline/diesel, etceteras.
My collie says:
I just bought a VW diesel Jetta. I didn’t know at the time but apparently I’m eligible for a $1500 tax credit because it’s so fuel efficient. On straight highway driving the onboard computer sez’ I’m getting almost 50 mpg, with my average mpg falling between 38 and 47 mpg depending on traffic for the daily commute to work.
Maybe I should have waited to buy the new Corvette though. 2007 was apparently a bad year for tax rebates and subsidies.
Nah, but I’ve got some extra 7.62 I can part with. Sold 2 of my AK-47’s and went to a higher cal. for primary defense.
Make it a really big Diesel, then.
Let me guess? Syrian, mint condition, never fired, dropped once?
Right on, Hangfire. I have an American-made Cadillac Brougham. Rear-wheel drive, 5.7 litre and paid for.
Can they please screw up so bad so that we clean house in 2010?
Vehicles purchased under this incentive program do not create greenhouse gases. They are perfect cars because a democrat came up with the idea.
Vehicles purchased under this incentive program are temporary and therefore the incentives should be also.
We need to start working on that soon.
#19, #20 - as I am actually one of those taxpayers, I just want to point out - here is another stimulus/incentive/bail out/tax break that I am not eiligible for, nice of people to decide for me how much is enough.
Car dealerships will just raise the price of cars…. DUH!
In the end we still get hosed.
What a joke,
These people are “real men of genius”
happy2behere: Stop earning so much money then.
Like hubbies F250 Superduty Powerstroke Deisel pickup?.
I love those ads.
I am liking the concept, but where do I sit in the mini???
…but see… CARS really do exist.
I guess it’s OK — so long as it’s retroactive to Sept 08 when the Crapola hit to be fair to those who stepped up on their own to help the economy/car dealers out.
Most folks will just roll car loans (and taxes) into their next mortgage financing anyway, at least as soon as home prices recover.
This approach would appear to cover those who don’t have mortgages.
After all, back in the 80s, one could deduct all interest payments.
Personally, I’d like to see deductibility for college loans (principle and interest). This would encourage rapid repayment by grads, and free up $$ for more college loans. After all, property taxes that fund K12 education in most states are tax deductible. Why discriminate against college costs?
Here’s Teh Thing: the Democrats have not been Ready For Primetime.
Unfortunately, now they are all very much Primetime. Look for Emanuel to try in vain to ride herd on them. That may work but then there’s always Biden.
The best part is all the new young voters that came out on Nov 4th for “change” are the ones that are going to have to pay for all of this.
BWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA. Morons.
I totally disagree with that statement. Spending has nothing to do with our problem.
The problems were non-recourse lending which caused a real estate valuation bubble, and government mandated sub-prime lending which injected too much risk into the mortgage market via Fannie Mae. The two fed on each other unchecked, and then collapsed.
Historically, we are about average as far as real debt as a % GDP. We have no problems at all servicing that debt and therefore it (and the spending) is not beyond our means.
Holding debt is NOT bad, it’s part of the efficient use of capital. Yea know….that CAPITALISM thing that’s made this country great???????
Spending in the short term to inflate the economy is what we need to do…and it’s not going to hurt us to do it.
It’s high time the right gets over its uber phobia about debt. It’s one of the major reasons why the right is out of power.
Oh, me…and I just bought a new car. Maybe, they’ll retroactive it back to November 2008. At least I can “feel good” for a little while, until the tax bill comes to my door. By the time I pay that bill, nothing will be left for car payments. Maybe the congress will bail me out of that one too. At any rate, I’m going to eat a good dinner tonight. I suspect, by the time congress gets done with all this, all we here will be able to afford, as taxpayers, to eat at dinner are peanut butter sandwiches (1 slice folded over), while we admire the “new” car that doesn’t have any gas in it.
very good point!! let the chickens come home to roost on them!!
I’m going to stay healthy as I can, for as long as I can, so I can get social security for a LONG LONG TIME!!
At this point banks are only making loans to people with good credit. In order to make this tax incentive have an impact, Congress is going to have to force banks to make loans to people with risky credit.
Where have I heard that one before?
I don’t think we conservatives object to debt as long as the debtor has the ability to repay that debt.
And I would offer that the right is out of power through its own ineptness on a multitiude of issues and the absolute ignorance on the part of the public as to whom blame belongs for the current financial mess. It belongs squarely on the Democrats yet they have largely been able to escape blame. Thanks in large part to a media culture that is largely Democrat/Liberal.
Enough with cars already! Let’s get some tax incentive action for good ol’ USA bicycle manufacturing!
I want a tax deduction and rebate for my new American made bicycle. My wife and I’ve already got two picked out : )
Damn am I a real idiot? I pay my two mortgages and I bought a car a few months ago. So I miss out on the hand-outs for mortgage money and now I have to trade in a car to get more money. I just can’t seem to win.
Soap, buy one for your Father-in-Law. rofl.
one that goes really fast, might as well get a thrill ride.
AJ,
No way. He drives a big honkin Lincoln (which I get to drive a lot!)
Well, if this goes into effect, I want MY money too. I just bought a new car (Mazda) and I pay exorbitant (extortive?) taxes here in Louisiana. Just how retroactive do they plan to make this BS?
Do your feet reach the peddles soap?
I couldnt resist. rofl.
*PEDALS… SHEESH.
Right on! Just shake out the sand and they’re good as new.
Nope but who cares. You get that big 8 going and you don’t need to hit the gas. It pulls itself along using the vacuum from the toilet bowl of a carburetor. Baby burns 4000 carbon credits per mile! I was hoping for 5000 but I can’t afford the jet fuel!
‘The One’ brings Jennifer Granholm (Gov of Michigan, or as we know her ‘Two Penny Jenny’, she ain’t worth 2 bits) into the new administration to implement ‘The Michigan Turn’, that’s where you go backwards to turn left.
This is the ditz that has driven companies to neighboring states and put many thousands out of work. A failed actress from Canada, she has come to reek vengeance on mankind with a smile.
Sorry, that was meant for the ‘Duh’ list.
I don’t need a new car. I bought one back in April. Where’s my incentive? Where’s my bail out?
Will they help me buy that Porsche 911 $137,850 I’ve always wanted.
I want it.
I want it now.
I want it want it I want it please Mr. Government.
That’s discrimination stopping the help at $49.500.
I want my share.
I EARNED IT. ……. opps
On November 17th, 2008 at 3:18 pm, Hangfire said:
I’ll buy an American car when Cadillac starts building big rear-wheel drive dreadnoughts
!
i gotta wipe the beer from my monitor now!
I’m gonna start training for repo man next week…this is going to be a smorgasbord of car loan defaults.
So far the savings are not enough to pay for the cost of repair an Big Three car and get it to the 50k mile mark.
Maybe I would buy one if they can pay for the entire cost plus repairs?
….nevermind.
If the problem with the economy won’t be considered “solved” until consumer spending is returned to the inflated and unsustainable levels of recent years, then we got a big problem that is about to be made even bigger.
Is anyone important willing to say that an economy based on consumer spending, where there is a negative savings rate, is not good idea. People cannot contune spending money that they don’t have in order to prop up the economy.
Face it, much of the money that has been used to buy things over the past several years has been funny money coming from peoples equity, or from too easy credit.
The real ironic thing is that we needed all these illegal immigrants to grow the economy to the size it was, when in truth our growth was not sustainable. I heard Carls Jr’s hamburger resturants are actualy able to hire english speaking employees nowadays.
I say let the economy contract a bit. It’s called a correction.
Oh, wouldn’t want to get those RICH people any tax incentive, huh?
Unbelievable. Those are the people who can probably buy one or even two new cars, and yet the government doesn’t see fit to give them a tax break. They couldn’t get federal stimulus checks, even though they paid their (more than fair share of) taxes, and now the governor is playing class warfare.
I am thoroughly convinced that liberalism is a true mental disorder.
I would rephrase that to “Bend over and spread your cheeks Baby!”
Paul Krugman @1:45 -
Dear God, please help us.
I can vouch for that. My uncle moved right across the border into Ohio specifically to escape her business taxes.
I have a compromise solution. Instead of giving money to Detroit the federal government can authorize the purchase of one GM , Ford or Chrysler car or truck to every American (legal with driver’s license ). That will give Detroit the sales boost they need. It will give each citizen something for our tax appropriation and we will all be happy. I know some would really like the Cadi but I would be very happy with a full size Buick.
And when the auto companies come around again in six months for another “free car” giveaway?
The longer the inevitable is put off and the more money that’s thrown down a bottomless pit, the worse it will be when people finally realize they gotta pay the piper.
And I’d rather pay the piper, than toss money at auto companies. Let them declare bankruptcy, sell the companies to the unions (which could purchase the corps using their mega-huge pension treasuries) or whatever they need to do to deal with the realities of life.
I won’t need another car until my Toyota konks out on me - likely to be a long time: single owner, only driver, services regularly
But if some rich woman wants to adopt me and buy me a Nissan 350Z, I’m down wid dat.
…Okay, I’ll take the Caddy XLR. It’ll do.
I want a big truck! With a shotgun rack in the rear window.
A nation in debt and morally corrupt will never reverse course until they stop living in denial.
I’m sorry, and I don’t mean to be pessimistic, but I’m not all that hopeful that Washington even gets it. Many of these politicians have never managed anything but campaign contributions. When we’re faced with the prospect of losing our AAA rating that should tell you how dire things are.
How about these ignoramuses stop “stimulating” the economy and start paying off the ginormous debt we’re now in? Can these idiots get beyond their egos and the feckless promises they made to the American people and give a little tough love both to the debtor American nation and individual citizen?
But what fun is that emjem24? I mean, that might take effort, perseverance and restraint - things that no liberal has ever demonstrated or believed in.
(Note: I said liberal - liberals come in two flavors - those with D behind their name, and those with R behind their name - though not all of those with either of those letters are liberal.)
Actually I think everybody commenting on this blog are ineligible for this “incentive”. In the fine print it actually reads “Those with earned income are ineligible such as those making over $250,000″. Of course those with unearned income (ie handouts) are eligible. If you worked to make money, sorry.
oops - everybody is - not everybody are. Sorry…grammar police