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If the goal was to get people to purchase new vehicles then eliminate or reduce taxes on the purchase of new vehicles. Also, not everyone who owns a "clunker" can afford the payments of a new car. Nothing in this current program to get them to exchange their gas guzzler for a newer used car with better fuel economy. By reducing or eliminating car sales tax you could get these people in the dealerships to purchase a newer and more fuel efficient vehicle. But that's not what Congress and Obama want.
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Originally Posted by GreenGene
Yes, one objective of the CARS program is to increase fuel efficiency of cars on the road ... but no, that isn't "the" one and only, or even main, purpose of the program.
I've linked to this before - an article on CNN.com last February, when they were talking about various proposals like the "cash for clunkers" program. Here's how it begins:
NEW YORK (CNNMoney.com) -- With auto sales at crisis levels, Washington is trying to figure out how to get Americans buying cars again.
Several ideas are on the table, but two of them are really making the industry pay attention. One plan is to make new car costs tax deductible. The other is to give rebates to Americans with old cars so they can better afford to buy new ones, a program otherwise known as "cash for clunkers."
As the various proposals began to take shape, the environmental possibilities of replacing older vehicles with newer vehicles gained traction, and in the CARS program that emerged, improving the overall fuel efficiency of the vehicles on the road became an important goal of the program. But that was NOT the original objective, and is not the primary reason for the program.
Do a search for "california clunkers law" and you'll see that what Obama and Congress is doing is making federal what California legislatures were trying to do to their state for enviromental reasons alone.
In some cases, the clunkers being turned in don't even have to run to qualify for the $4,500.
A guy here in Missouri had a 1978 GMC pickup in his barn that hadn't ran for at least 15 years. He towed it into a dealer & got his $4,500 toward a new vehicle.
And this was under the CFC program? As I understand it, they don't take any vehicles over 25 years old.
In some cases, the clunkers being turned in don't even have to run to qualify for the $4,500.
A guy here in Missouri had a 1978 GMC pickup in his barn that hadn't ran for at least 15 years. He towed it into a dealer & got his $4,500 toward a new vehicle.
I don't wish to call you a liar but as pointed out the vehicle must be less than 25 years old, and has to have been insured continuously for one year prior to trade in and have a current registration.
Now he might have gotten $4,500 from the dealer but the dealer isn't going to get $4,500 from the program.
If the goal was to get people to purchase new vehicles then eliminate or reduce taxes on the purchase of new vehicles. Also, not everyone who owns a "clunker" can afford the payments of a new car. Nothing in this current program to get them to exchange their gas guzzler for a newer used car with better fuel economy. By reducing or eliminating car sales tax you could get these people in the dealerships to purchase a newer and more fuel efficient vehicle. But that's not what Congress and Obama want.
So, you think eliminating the car sales tax is a good idea? You think that would get people into car dealerships to purchase new and more fuel-efficient vehicles?
Good news. For 2009 only, the car sales tax can be deducted from your federal taxes!
Car buyers can deduct their sales tax expense when purchasing a new vehicle. This deduction, available for 2009 only, is different than the existing itemized deduction for sales taxes.
First, the new vehicle sales tax deduction will be an additional amount added to a person's standard deduction.
Second, for taxpayers who itemize, the new vehicle sales tax deduction will be taken in addition to a deduction for state and local income taxes.
Third, for taxpayers who opt for the sales tax deduction in lieu of the deduction for state and local income taxes, any sales tax paid will be added to the deduction amount found using the IRS's sales tax calculator.
Fourth, the new deduction is available only for the purchase of a new vehicle, including cars, trucks, RVs, motor homes, and motorcycles. The old deduction for sales tax is available for boats and aircraft as well as for leased cars and trucks.
WASHINGTON —The Internal Revenue Service and Treasury Department today announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase.
The IRS and Treasury have determined that purchases made in states without a sales tax — such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon — can also qualify for the deduction.
Wow, only for new car sales. That's great for those people who can afford the monthly payments of a new car. If you reread my post you'll see I said it should also apply to used car sales.
Wouldn't have been easier for everyone to simply apply the car sales tax benefit at the point of sale? I'm glad you pointed out the tax credit since I've never seen such a program on any news source.
The CARS program only says that the company doing the crushing is allowed to sell the parts (except engine and drive train). If they choose not to, well, that's their decision .... just like it's the consumer's decision to participate in the program.
You mean like how it's our decision to vote out the idiots that passed this, no matter which side of the aisle they sit on?
Wow, only for new car sales. That's great for those people who can afford the monthly payments of a new car. If you reread my post you'll see I said it should also apply to used car sales.
Yes. And you also said "By reducing or eliminating car sales tax you could get these people in the dealerships to purchase a newer and more fuel efficient vehicle. But that's not what Congress and Obama want." But in fact Congress did provide for a car sales tax write-off on your federal return for this year.
Yes, it's for new cars only, since the purchase of new cars has a far more positive impact on the economy; specificall, the auto industry. They aren't making used cars, you know - only new cars.
Quote:
Originally Posted by sailordave
Wouldn't have been easier for everyone to simply apply the car sales tax benefit at the point of sale? I'm glad you pointed out the tax credit since I've never seen such a program on any news source.
They set it up this way so that people living in states without state sales taxes could also get a tax break (as per the last link in my previous post). I agree, this hasn't been widely covered in the news media ... guess they've been busy covering more important things.
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