Given I'm pretty much a fan of all tax breaks, I find this would be a good thing. Her proposal is to allow people who buy cars to deduct the sales tax and the interest on financing for cars purchased for the rest of 2008. Doesn't really help in states that don't have a sales tax on vehicles, but otherwise, sounds peachy.
Mikulski, a Maryland Democrat, said the temporary tax break she proposes is intended to "stimulate demand" at flagging car dealerships across Maryland and the rest of the nation, which have been hit hard by the economic downturn. Under Mikulski's plan, which she said she'll introduce in the Senate next week, consumers will be able to deduct the sales tax and the interest paid on a car loan, if a vehicle is purchased between today and Dec. 31. The tax break is available for cars priced under $49,500.But wait. Why are expensive cars excluded? Are they not cars that carry the highest profit margins for automakers? And why did the Sun exclude one little tidbit, that the incentive is only for households making less than $250k a year.
Why would you do that, other than to continue to foster class warfare? Why limit the break to lower profit vehicles? Why not encourage "The Rich" to buy new cars?
It might have made the difference for me. Now I'll buy a used German car just out of spite.