I am a midwesterner, born and bred. My wife put me through school working at Chrysler Motors; my first job out of college was working for an auto parts manufacturer. A good part of my professional life has been spent in assisting automobile-related companies in staying open and expanding. My state, Ohio, is shuddering as the automobile industry slowly dies.
Bad news is rampant of course . . . the most recent news:
DEARBORN, Mich. - Ford Motor Co. lost a staggering $12.7 billion in 2006 _ an average of $4,380 for every car and truck it sold.
The company that invented the assembly line and whose name was a byword for the auto industry warned it will bleed cash for two more years before it has a shot at making money.
. . . .
A fourth-quarter loss of $5.8 billion helped drive up the red ink, which for the year amounted to $6.79 per share versus a profit of $1.44 billion, or 77 cents a share, in 2005.
http://news.yahoo.com/...
While there are many that feel that the big auto companies are part of the problem . . . and they are to a certain extent . . . the fact remains that they are an important part of our national economy. They have been slow to adapt to change and are burdened by the legacy costs of past deals with labor unions. They are producing cars that are not particularly efficient and which continue to be a real burden on the environment.
So my proposal is this . . . I have not heard it advanced by anyone, Republican or Democrat . . . it's simple . . . I would suggest that in connection with the purchase of a new car or truck . . . any new car or truck . . . that gets over 40 miles per gallon, that a purchaser would be entitled to claim a $3,000 credit on his or her taxes for the following year. This would have the effect of encouraging technological innovation, generating new sales tax dollars at the local level, reducing consumption of oil, and giving a substantial tax benefit to those that need it most . . . the middle class who buy most of the cars in this country. It would also serve the purpose of extending the life of our auto industry and keeping people employed in those industries for a little while longer.
Is this a proposal that anyone can support?