The auto stimulus favors the rich.

[screembloodymurder]

Those who buy expensive cars and those in the highest tax brackets get the lion's share of the stimulus benefit. Why give the bulk of the breaks to the rich? Why not give the same tax credit (say $1,000) to everyone who buys an auto?

[Baby Snooks]

1. But everyone does get it...

It's just the rich can afford to buy a car and everyone else cannot. The rich do matter. That's why this favors them. The way it always does. The rich, you see, are what made this country so great. Not the middle class. As Congress has now stated twice with its "stimulus" packages. As Barack Obama has stated as well. The rich will spend their money once it starts flowing, and the money will trickle down to everyone else.

Didn't you learn anything about "voodoo economics" the past 29 years? Barack Obama obviously did. You stick it to the middle class and they pay for the rich and the poor. How it works.

[me b zola]

2. Normally I would agree with you about this...

...but this really would help people keep their jobs.

[Postman]

3. Spend $25,000 to get $1500? Who's the f**king genius who thought this up?

[Romulox]

4. Most of the cars at the upper end of the range are imports, anyhow.

[Winterblues]

5. Most people earning $40,000 or less get all their taxes back

A tax Credit will not help them at all..It will help those earning one hundred thousand and more though.

[screembloodymurder]

7. I agree. Credit or deduction, it's only good if you pay taxes.

But, a deduction is worth more to those in the higher brackets.

[WolverineDG]

6. Well, I'd consider getting a new car if this passes

Would be nice to be able to deduct the interest on the car loan like we could in the olden days.


dg

[frazzled]

8. Yo--it keeps workers at auto plants and suppliers employed

So the benefit is much greater than you are indicating. It doesn't just help an individual to buy a car: it helps the people employed in vast sectors of the auto industry to keep their jobs.

[anonymous171]

9. It's about workers, not consumers. Without jobs, consumers will not spend any money.

More jobs=More consuming=Better economy

[Still Sensible]

10. It certainly benefits those that are able to purchase a car

with the aim of helping prop up the ailing auto industry--hopefully having some positive effect in protecting jobs in that very hard hit sector.

I think it is disingenuous to imply that it only favors the "rich," however that is defined. The fact is it WILL help anybody that buys a car.

[screembloodymurder]

12. It helps all, but favors the rich.

For example:
Ricky Rich buys a $49,000 Volvo.
He deducts the 6% sales tax (6% of $49,000 = $2940) and the 6% interest on the loan ($7,838 over the life of the loan) and winds up with a $10,778 deduction.
In the 35% bracket the tax savings would be $3,772.30.

I buy a $16,000 Pontiac Vibe. (6% of $16,000 = $960) and my interest deduction is ($2,559) and I wind up with a $3,519 deduction.
In the 15% bracket the tax savings would be $528.00.

Who gets the bulk of the taxpayers money?

[tabbycat31]

11. cap the auto stimulus

or put a provision like you can deduct 100% of the car's value under 20K, 50% from 20-30K, etc if the car is domestic.
Cut it in half if the car is foreign.