Posted on 06/17/2009 10:11:02 AM PDT by upchuck
Auto industry supporters in Congress are bracing for a last-minute challenge this week to a legislative proposal that is designed to spur U.S. vehicle sales.
Republican Senator Judd Gregg of New Hampshire said he hopes to raise a procedural motion on the Senate floor to strip the provision from a bill that continues funding for the Iraq and Afghanistan wars.
"As the nation's debt continues to climb to unsustainable levels, it is troubling that Congress is looking for even more fiscally reckless ways to subsidize the auto industry," Gregg said in a statement.
The so-called "cash for clunkers" plan approved in House/Senate negotiations on the larger spending bill would offer consumers up to $1 billion in vouchers toward the purchase of fuel efficient vehicles when they trade in older, less efficient models.
Supporters hope the plan that would run through September 30 will generate up to 250,000 new car sales, boosting a severely depressed industry that has seen two U.S. manufacturers -- General Motors Corp and Chrysler -- seek bankruptcy protection since April.
Gregg argues the proposal is not only fiscally irresponsible but procedurally flawed, too, because it was not included in full House or Senate votes on the wartime appropriations bill.
Senator Debbie Stabenow of Michigan, a lead advocate of the auto proposal, said the measure was of prime importance to automakers and related businesses.
"This is our one chance opportunity to help dealers," Stabenow said.
(Excerpt) Read more at reuters.com ...
My 99 Ford Escort still gets 23 mpg, has 53500 actual miles on it, is in excellent condition and is paid off. I have no intention of replacing it with some new POS obamamobile.
My thoughts exactly. All of this rush legislation is coming with a lot (!!!) of unintended consequences.
When I first heard about this clunker-for-cash deal, I was thinking the perfect business would be a recycler...buy the clunkers off of the new car dealers at scrap value, and flip them to new car buyers for half the value of their tax credit. This will happen...just wait. And, if they try to put ownership rules in place, you'll see DMV-assisted scams falsifying VIN numbers and back-dating clunker purchases.
Unintended consequences...ya gotta love 'em.
The tragic sadness of your predictions is that unless this country wakes up they will come true.
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