The Wall Street Journal is reporting that legislators are likely to add a tax credit worth $4,500 to the stimulus bill for consumers that replace their older cars with more fuel efficient cars.
The problem for lawmakers, and Big Three lobbyists, is how to ensure that Americans don’t trade in their old cars and purchase foreign car makers hybrids. Heaven forbid. There is also no indication of how long this “cash for clunkers” plan might last.
With auto sales plummeting and Obama’s plan to force auto makers to get their emissions under control, the tax credit makes sense as a compromise. Unfortunately, with the ever ballooning stimulus package, the timing is a bit off, as it turns the program into another piece of pork. Then again, the time is ripe for pork.
If we’re going to spend a trillion dollars on the economy, why not let everyone get something. Obama is close with Oprah, so this could be his, “You get a new car, you get a new car, you get a new car!!!” moment.
Business Insider Emails & Alerts
Site highlights each day to your inbox.