Obama Offers Incentives To Spur Auto Sales

Government Will Provide Tax Relief For Buying New U.S. Cars And Credit For Replacing Old Ones

(AP)  President Barack Obama says the federal government is preparing to offer several incentives to get Americans to buy more U.S.-made cars.

In a White House speech, Mr. Obama said the IRS will start notifying consumers who purchased cars after Feb. 16 that they can deduct the cost of any sales and excise taxes. The program would remain in effect till year's end.

Mr. Obama says he wants to work with Congress to use parts of the economic stimulus package to fund a program that would allow consumers to get a "generous credit" when they replace an older, less fuel-efficient car and buy a new, cleaner car.

The president says he wants to make the program retroactive starting Monday. It's meant to boost car sales in the U.S., which have seen their worst decline in 27 years.

Mr. Obama also said the government will guarantee warranties on any GM or Chrysler vehicles.

[sjc_1]

These seem like pretty lame incentives. Sometimes it might be best to do nothing at all in certain circumstances rather than try to seem like you are doing something.

[nolies74621]

Obama Offers Incentives To Spur Auto Sales
Government Will Provide Tax Relief For Buying New U.S. Cars And Credit For Replacing Old Ones

Wonderful idea! DUH, I wonder if he has noticed the unemployment rate, the lack of confidence in banks, people losing thier IRAs'..etc..etc ..etc...............................?

[swin5]

You want a plan for saving the American auto industry that will not cost any tax dollars, will not lead to any government borrowing, will keep the government out of private enterprise, will stop our drift into socialism, will preserve good paying jobs in this country, and most important preserve the constitution? Stop the importing of ALL foreign made cars and car parts through high tariffs. Throughout history, tariffs were successfully used by ALL countries that wanted to grow and industrialize. We just need to do the same thing now to preserve our industry. A $13 trillion national debt, the loss of the middle class and good paying jobs, a half trillion or more yearly trade deficit, the inability to make anything in this country anymore, and a dollar that is starting to disappear in value is too high a price to pay to keep importing all this foreign made junk.

[swin5]

So Obama says buy a new car and I'll put the government even further in debt by giving you a tax break on your purchase, so everyone goes out and buys their Hyundai's and Toyota's and Honda's and more American wealth is transferred to Japan, Korea, and other foreign countries and our country gets poorer and even more in debt. And people who don't need a new car or who can't afford one even with the tax break will pay for the incentives with their tax dollars. Seems to me like we got another candidate for 'voodoo' economics. Is it clear to anybody yet that this guy in Washington doesn't have a clue what he's doing and he's in way over his head?

[sjc_1]

Many think that since housing (or rather easy home loans) got us into this mess, if we just make it easier to buy houses everything will come back to normal. You get good home sales based on good paying stable jobs that are productive. You get good car sales the same way. We need to have the cause/effect relationships clear. Start with good paying jobs that last and everything else will follow.

[ddaryl1]

There's about 40 million people over 50 in the work force
- pay them $1 million apiece severance with stipulations.



Posted by grabandgo ------------------------------------------------------------------------------------------------------------------------

So you want the government to pay 40 million people over 50 a million $$$$...

I serioulsy doubt the government or this country can afford to hand over 40 trillion dollars to the 40 million 50 or older workers.

Do the math 40 million * 1 million = 40,000,000,000,000

[ddaryl1]

Cars are still too expensive. I could right off all the tazes and I still would be saddled with a $300 + month payment AND $50 a month in auto insurance.

no matter what they offer I still get a much bigger value buying cheap used cars with 100K miles on them and putting money into them as needed. I have 3 cars for the fmaily. All of them have over 140K miles and all 3 together have cost me $20K total which includes fixing them ( and I don't do the work myself I take them to the shop) and I have owned these 3 cars for 4+ years.

So anyone want to tell me why I should buy a new car when I am being told I am responsible for saving for my own retirement and I healthcare, and trying to stay afloat. Unless I can buy a brand new car with high quality for $10K or less i will never consider it. I cannot afford to waste money because like I said I have to save for my own retirement. I cannot depend on a pension or a 401K plan. I cannot depend on healthcare or dental, I must pay for this all and I must work as much overtime as I can get to do just that.

Isn't capitialism wonderful, personally I look forward to its implosion

[airboatboy]

Obama and the Socialist Democrats are taking over big business.

This is a guarantee those businesses will fail - just look at what a lousy job the Democrats do running the government!
Posted by _____One_American_____ at 12:19 PM : Mar 30, 2009


Yeah, I guess they should turn to former president Bush for advise. He left the country in GREAT shape after 8 years, and look how popular he was when he left office!

[grabandgo]

Here is a simple solution

This was an article from the St. Petersburg Times
Newspaper on Sunday. The Business Section asked readers
for ideas on "How Would You Fix the Economy?"
Dear
Mr.President,

Patriotic retirement:

There's about 40 million people over 50 in the work force
- pay them $1 million apiece severance with stipulations.


1) They leave their jobs. Forty million job openings
-
Unemployment fixed.

2) They buy NEW American cars. Forty million cars ordered
- Auto Industry fixed.

3) They either buy a house/pay off their mortgage -
Housing Crisis fixed.

[bubba027]

the GOP would kill the industry to spite the unions. The Dems will kill the industry because it is bleeding. The problem seems to be that the banks are whording the money they were gifted. So who suffers? Always the middle class workers-always.
Posted by oberon14233 at 10:58 AM : Mar 30, 2009

The auto industry changed forever when foreign car makers were allowed to sell cars in the US market. The foreign manufacturers can manufactures cars at less expense than the US makers even in the US. Today, their cars are not much better on the most part, yet they're profitable to make. Blame it on whomever you wish, but the US makers will continue to fail unless they can build a car of similar quality for less.

[whitemale08]

The only incentive to 'spur' auto sales is to shut down the Federal Reserve System and put the banks 'too big to fail' into receivership and bankruptcy re-organization.

That will make it oficial that the dead securitization machine is buried and no more; forcing companies to raise wages instead of handing out credit cards and home-equity loans for packaging worthless derivatives and credit-default swaps.

[bubba027]

HELLO, i'M ON SOCIAL SECURITY DISIBILITY BECAUSE I WAS HIT BY A CAR AND CANT WORK. AND I DONT HAVE A JOB THAT PAYS LIKE THE AUTO MANURFACTERS WORKERS. SO IF OBAMA WOULD MAKE THE MANUFACTERS SET THE PRICES OF THE AUTOS ACCORDING TO MY INCOME THEY WOULD SELL A LOT MORE CARS. THE MANURFACTERS HAVE PRICED THEMSELFS OUT OF JOBS.
Posted by scollypott at 11:17 AM : Mar 30, 2009

Sorry, it actually costs money to make one of these. They don't come out of thin air. There are still some nice used vehicles available for those who can't afford a new one.

[sjc_1]

I like Obama, but he may have made his first big mistake with GM by playing the politics and not the policy. He wants to show that he will deal decisively with GM by firing the one guy that can save the company. Obama has blown the deal and made it a 50/50 proposition at best, when he had better odds before.

[carlpio]

So who is going to pay for all these "incentives" and warranty work? Great idea except that the incentives and warranty costs will be paid for by guess who - yep - you and me through our taxes. There is no such thing as a free lunch - pseudo economics is alive and well and living in DC.

[SusanStoHelit]

That's a nice offer, a nice method to try to save the manufacturers, without propping up a bad business. I'm mostly happy with my current car - but this is a nice offer.

[scollypott]

HELLO, i'M ON SOCIAL SECURITY DISIBILITY BECAUSE I WAS HIT BY A CAR AND CANT WORK. AND I DONT HAVE A JOB THAT PAYS LIKE THE AUTO MANURFACTERS WORKERS. SO IF OBAMA WOULD MAKE THE MANUFACTERS SET THE PRICES OF THE AUTOS ACCORDING TO MY INCOME THEY WOULD SELL A LOT MORE CARS. THE MANURFACTERS HAVE PRICED THEMSELFS OUT OF JOBS.

[oberon14233]

the GOP would kill the industry to spite the unions. The Dems will kill the industry because it is bleeding. The problem seems to be that the banks are whording the money they were gifted. So who suffers? Always the middle class workers-always.

[vranger]

What a big offer. These taxes are ALREADY deductible, and always have been! ROFLMAO

And the clowns in the White House roll on, beeping their little horns.

[momofdaisy]

He also needs to get GM and Chrysler to knock about $5 to $10 thousand dollars off of their high priced cars. That means all of them. I bought a 2006 PT Cruiser because of the "cute factor" and it runs like ****.