I love this idea…and I would certainly take advantage of it if it becomes law.
The bill is called “The Energy Efficient and Environmentally Friendly Automobile Tax Credit Act of 2008” and it provides tax credits of up to $2K for people who sell or trade in their car for a model that’s 20% more fuel efficient.
Fort Bend Now also notes some additional ways to save:
The bill also creates a federal tax deduction for any state or local taxes paid on the purchase of the more fuel-efficient automobile and makes interest on loans to purchase the more fuel-efficient automobile tax deductible.
On the flip side, you have McCain proposing tax incentives for car companies to make more fuel efficient vehicles, but if Americans can’t afford these traditionally more expensive autos in the first place, it’s going to hurt adoption rates. That’s why I called it a stunt when he proposed it.
Ultimately, Paul’s bill is meant to help people use less gas, which will drive down gas prices and lessen pollution. One of the fews ways the government can actually help accomplish this is to incent Americans to take action, and I can only imagine that if the car companies were smart, they’d be much more in favor of an idea like this instead of McCain’s.
In any event, well done Mr. Paul. I hope to see this legislation up for consideration in the House soon.