The Senate voted yesterday 71-26 to give tax breaks to Americans who buy new cars. They don't have to be PHEVs, EVs or even cars that just get better than average gas mileage. No, nearly any new car will do. The amendment to the already bloated, Senate version of the economic stimulus bill was proposed by Senator Barbara Mikulski D-Md. According to the amendment anyone purchasing a passenger car, minivan or light truck between November 12, 2008 (that's right, it's a retroactive tax cut!) and December 31, 2009 would be entitled to an income tax rebate on their sales or excise tax as well as on the interest on their loan. Individual buyers earning up to $125,000 and couples making up to $250,000 would be able to take the sales tax on the first $49,500 of a car's price off of their federal income taxes.
Senate Finance Chairman Max Baucus D-Mt, who opposed the measure, estimated that it would add $11 billion to the Senate version of the stimulus bill raising it's total price tax to almost 900 billion.
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