Tuesday, February 17, 2009

Car sales tax deduction

Consumers are expected to receive a tax break for the purchase of a new car this year but it may not have much impact on the steep decline in auto sales.
The $787 billion economic stimulus, which was signed into law, would give consumers a state sales tax and excise tax deduction on new cars purchased before the end of 2009. Many new car buyers could see savings of hundreds of dollars in next year's tax filing.
The incentives, worth $1.68 billion, were designed to boost auto sales and increase traffic in dealer showrooms during a dark period for the industry. General Motors Corp. and Chrysler LLC are living off of billions of dollars in government loans and must convince President Obama's administration that they can emerge as viable companies.
It doen't matter how much government aid we give to the Big Three automakers, they can't survive if consumers aren't buying cars, and banks aren't making loans so that consumers can purchase cars
Read more


LA Times


Huffington Post

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