Posted on 10/11/2024 9:14:38 AM PDT by SeekAndFind
With less than a month to Election Day, former President Donald Trump on Thursday announced a new tax break proposal.
Speaking at the Detroit Economic Club, the Republican presidential nominee said he would make the interest paid on car loans tax deductible.
“That’s going to revolutionize your industry,” he said. “This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families. This is a phenomenal thing, if I do say so myself."
Detroit is home to automakers General Motors, Ford Motor Co. and Netherlands-based Stellantis N.V., owner of Chrysler. The United Auto Workers union has endorsed Harris, but Michigan remains fully in play, with Trump gaining ground over the past week and narrowing Harris’ lead in the state to 1.1 percentage points in the latest polling average compiled by analyst Nate Silver.Interest deductions for car loans as well as credit card and other consumer debt were wiped out as part of the 1986 tax overhaul during the Reagan administration. Trump offered no price tag for the proposal, which would require action by Congress.
The last time lawmakers tried something similar was on a temporary tax break, authored by former Sen. Barbara A. Mikulski, D-Md., that initially passed the Senate as part of the 2009 Great Recession-era stimulus package.
Mikulski’s amendment would have allowed car buyers to write off interest expenses on loans worth up to $49,500 for new cars purchased from late 2008 through the following year. The benefit was limited to households earning up to $250,000 — and $125,000 for single tax-filers — and scored as an $8.5 billion cost at the time. It was dropped in conference negotiations with the House. (Roll Call)
The proposal comes after he also pledged this week to address the double taxation of Americans living abroad, saying he supports ending the practice.
Both sides, unfortunately, are engaging in the age-old practice of attempting to buy votes.
Owww owwww! I know, lets make all interest and all medical deductible.............
“That’s going to revolutionize your industry,” he said. “This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families. This is a phenomenal thing, if I do say so myself.”4
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The condition here must be “domestic auto production”. Car loan interest tax breaks ONLY to cars built in the USA.
I dunno about that one. I always drove clunkers and got rewarded for it later in life. I see too many Ford 150 trucks out there with young drivers making monthly payments. Too many had tattoos.
It may work with American cars. Think ‘targeted’ tax cuts.
Targeted-want that a democrat term?
Yes, but Trump is doing it in a way that HELPS America and Americans, and is fair. He also has a track record of cutting taxes. The Democrats have no intention whatsoever of cutting taxes, not in a ways that are meaningful, and certainly not overall.
He can propose, but the House originates ALL tax policy.
I doubt that ANY of the proposals—from either candidate will see the light of day if we keep running deficits of 1.8 Trillion every year.
Yep, domestic only.
Otherwise prices for consumer use will shoot higher.
Kamala will soon parrot Trump on this.
Then, Poof! it becomes a day-one presidential mandate.
“Both sides, unfortunately, are engaging in the age-old practice of attempting to buy votes”.
a few decades ago... all interest WAS fully deductible... who allowed that to change? Republicans and Democrats... but who was president? Carter? Reagan? Bush?
I don’t see anything more fair in not taxing tip income than trying to give the tax credit to companies for helping to pay off student debt. (I’m against both.)
The tax code has always been used to motivate politically preferred goals.
Politicians will always do this.
That would be Trump. And because of that, almost no one itemizes their taxes unless the are multimillionaires. And a lot less money goes to charity because of it.
Oh, I remember it well.
” Car loan interest tax breaks ONLY to cars built in the USA.”
My Toyota was built in the US. I bet most Fords aren’t.
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Does ‘assembled’ mean built in the U.S.? Hmmm……
I remember when the interest on credit cards was deductible.
Reagan
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