flashplayer said:

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That sounds like a credit, not a deduction. Unless I just forgot math. Which is possible.

If it's a deduction, a $500 deduction isn't really helping people that much.

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$2500 is the interest deduction, $500 tax benefit

BTKAG97 said:

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It's past time for a flat tax with a single, large exemption (expecting income tax to never be replaced).

Making taxes MORE COMPLICATED by adding more BS carve-outs is not what is needed.

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Side benefit of this would be the elimination of social engineering.
Another side benefit would be a large reduction in required IRS agents.
Another side benefit would be the need for tax accounts would be reduced.

Dan Scott said:

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flashplayer said:

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That sounds like a credit, not a deduction. Unless I just forgot math. Which is possible.

If it's a deduction, a $500 deduction isn't really helping people that much.

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$2500 is the interest deduction, $500 tax benefit

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Awesome! An almost 10% tax cut for 50% of households with a family of four. That will have more voters concerned with keeping tax rates low and holding our representatives accountable..

deddog said:

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Bad Trump. Government choosing winners and losers is a bad idea.
Why not do the same thing for credit card debt?

What will happen is that car companies will raise prices even more, and people will buy even more cars they can't afford.

This is Clash for Clunkers, Part 2.

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Too late to bellyache about this.
It has gone on for decades and decades.

lead said:

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Why is the "middle class" the most noble cause? What is middle class? I suspect I'm a member but this won't help me because I don't finance vehicles.

This is dumber than no-tax-on-tips and only slightly less dumb than tax-free overtime. But

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Here's the middle class. They keep society running and stable. They are the backbone.

Logos Stick said:

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I don't love it. Not at all.

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Get rid of onerous cafe standards and reduce the price of cars so we don't need huge loans in the first place

Dan Scott said:

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lead said:

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Why is the "middle class" the most noble cause? What is middle class? I suspect I'm a member but this won't help me because I don't finance vehicles.

This is dumber than no-tax-on-tips and only slightly less dumb than tax-free overtime. But

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Here's the middle class. They keep society running and stable. They are the backbone.

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The problem is that they are detached from taxing consequences and many vote accordingly. Everyone should have the same net rate skin in the game. Or everybody should not have the same say in how our government operates.

I presume this is only for folks that itemize deductions. The standard deduction is so high now that mot people no longer have enough deductions to beat the standard deduction. This will probably only be applicable to the rich that have large deductions.

What is "made in America " ?

This could be an accountant's dream.

Definitely better options, but pick the battles you can win.

A. G. Pennypacker said:

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I presume this is only for folks that itemize deductions. The standard deduction is so high now that mot people no longer have enough deductions to beat the standard deduction. This will probably only be applicable to the rich that have large deductions.

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$500 is irrelevant to the rich. And if you own a small business, you already have it. 6000lbs or bust.

Dumb. The tax codes does incentivize behavior. But with mortgage interest it at least makes sense. You are incentivizing people to buy homes (an appreciating asset).

If this case, you are incentivizing people to buy a depreciating asset and to finance more of it.

We don't need more consumer debt.

Kansas Kid said:

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lead said:

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Why is the "middle class" the most noble cause? What is middle class? I suspect I'm a member but this won't help me because I don't finance vehicles.

This is dumber than no-tax-on-tips and only slightly less dumb than tax-free overtime. But

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I strongly disagree. Tax free overtime is just as dumb as the other two.

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Yep. I can see millions of salaried people working 60-70 hour weeks asking to be move to an hourly (or even salaried) system with overtime. Talk about a YUGE tax cut!!

So since you like the house deduction you are ok with it? I don't own a home because I like to move every few years. You get your deduction if this happens shouldn't I be able to get one that benefits me? I don't finance vehicles but if they make it worth my while I would.

Fightin_Aggie said:

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Logos Stick said:

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I don't love it. Not at all.

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Get rid of onerous cafe standards and reduce the price of cars so we don't need huge loans in the first place

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This...

All a gimmick like this will do is make cars, trucks, SUVs even more expensive.

We need all out effort to get EPA out of auto manufacturing.

deddog said:

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Bad Trump. Government choosing winners and losers is a bad idea.
Why not do the same thing for credit card debt?

What will happen is that car companies will raise prices even more, and people will buy even more cars they can't afford.

This is Clash for Clunkers, Part 2.

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I'm not turning down any tax cuts. We pay WAY too much in taxes. Tax cuts are good.

Tecolote said:

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Kansas Kid said:

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lead said:

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Why is the "middle class" the most noble cause? What is middle class? I suspect I'm a member but this won't help me because I don't finance vehicles.

This is dumber than no-tax-on-tips and only slightly less dumb than tax-free overtime. But

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I strongly disagree. Tax free overtime is just as dumb as the other two.

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Yep. I can see millions of salaried people working 60-70 hour weeks asking to be move to an hourly system with overtime. Talk about a YUGE tax cut!!

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Irrelevant. The Department of Labor defines exempt from OT and non-exempt from OT.

Cars are expensive, yes. People buying cars outside of their true economic means is an issue (but understand car prices have become out of control).

Not sure providing a tax incentive on buying beyond one's means is prudent, but get that America is car status symbol focused (unfortunately IMO) and everyone should have the freedom to over indulge and go deep into debt.

Ripe for fraud. I'll allow it.

KT_Ag08 said:

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Tecolote said:

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Kansas Kid said:

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lead said:

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Why is the "middle class" the most noble cause? What is middle class? I suspect I'm a member but this won't help me because I don't finance vehicles.

This is dumber than no-tax-on-tips and only slightly less dumb than tax-free overtime. But

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I strongly disagree. Tax free overtime is just as dumb as the other two.

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Yep. I can see millions of salaried people working 60-70 hour weeks asking to be move to an hourly system with overtime. Talk about a YUGE tax cut!!

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Irrelevant. The Department of Labor defines exempt from OT and non-exempt from OT.

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No, not irrelevant. Am fully familiar with the exempt and non-exempt status. If OT becomes non taxed, then even salaried can be switched to non-exempt and have a much lower base salary and then have OT. Problem is employer and employee have to track actual hours.

All these new rules are just convoluting the tax codes more. I thought Republicans were for simpler tax codes.

American branded cars, or cars manufactured in America? Mby percentage parts, or just assembled in America with mostly foreign made parts? A Chevy made in Mexico, or a Toyota made in Texas, with parts from all over the globe?

MouthBQ98 said:

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American branded cars, or cars manufactured in America? Mby percentage parts, or just assembled in America with mostly foreign made parts? A Chevy made in Mexico, or a Toyota made in Texas, with parts from all over the globe?

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Sure looks like a question for the US government to pick the winners and losers and what you should drive.

CanyonAg77 said:

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Quit piddling around the tax code and encouraging debt.

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How else will he encourage people to buy crap quality American cars?

MouthBQ98 said:

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American branded cars, or cars manufactured in America? Mby percentage parts, or just assembled in America with mostly foreign made parts? A Chevy made in Mexico, or a Toyota made in Texas, with parts from all over the globe?

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My old JD tractor was built in Iowa. Has Japanese starter and alternator, German injector pump, German MFWD, etc etc

How do you decide what is "American"?

KT_Ag08 said:

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Tecolote said:

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Kansas Kid said:

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lead said:

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Why is the "middle class" the most noble cause? What is middle class? I suspect I'm a member but this won't help me because I don't finance vehicles.

This is dumber than no-tax-on-tips and only slightly less dumb than tax-free overtime. But

---

I strongly disagree. Tax free overtime is just as dumb as the other two.

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Yep. I can see millions of salaried people working 60-70 hour weeks asking to be move to an hourly system with overtime. Talk about a YUGE tax cut!!

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Irrelevant. The Department of Labor defines exempt from OT and non-exempt from OT.

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Without realizing it, you're hitting on one of the primary issues. DOL may define exempt from OT or not, but that doesn't mean you can't pay employees overtime if their roles are exempt from the DOL requirement. So now congress (or they will likely delegate to Treasury) has to define exactly what part of your paycheck is overtime and who is at risk when that distinction is messed up. They also have to define the reporting mechanism, so you can argue with your employer about how many hours were OT hours. Don't forget that some states define exempt and non exempt, as well as hours required for OT differently than the DOL.

You people who have in the last 2 years gone from "everyone should pay something" to "just do the populist thing and give more tax complexity and hopefully cut my taxes" are disgusting. Make a stand on principles instead of flip flopping based on who says something or whether you'll get a benefit.

Pinochet said:

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KT_Ag08 said:

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Tecolote said:

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Kansas Kid said:

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lead said:

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Why is the "middle class" the most noble cause? What is middle class? I suspect I'm a member but this won't help me because I don't finance vehicles.

This is dumber than no-tax-on-tips and only slightly less dumb than tax-free overtime. But

---

I strongly disagree. Tax free overtime is just as dumb as the other two.

---

Yep. I can see millions of salaried people working 60-70 hour weeks asking to be move to an hourly system with overtime. Talk about a YUGE tax cut!!

---

Irrelevant. The Department of Labor defines exempt from OT and non-exempt from OT.

---

Without realizing it, you're hitting on one of the primary issues. DOL may define exempt from OT or not, but that doesn't mean you can't pay employees overtime if their roles are exempt from the DOL requirement. So now congress (or they will likely delegate to Treasury) has to define exactly what part of your paycheck is overtime and who is at risk when that distinction is messed up. They also have to define the reporting mechanism, so you can argue with your employer about how many hours were OT hours. Don't forget that some states define exempt and non exempt, as well as hours required for OT differently than the DOL.

You people who have in the last 2 years gone from "everyone should pay something" to "just do the populist thing and give more tax complexity and hopefully cut my taxes" are disgusting. Make a stand on principles instead of flip flopping based on who says something or whether you'll get a benefit.

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Bingo!

I buy used cars, and I pay cash. Not really interested in subsidizing your loan.

backintexas2013 said:

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So since you like the house deduction you are ok with it? I don't own a home because I like to move every few years. You get your deduction if this happens shouldn't I be able to get one that benefits me? I don't finance vehicles but if they make it worth my while I would.

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With the standard deduction so high, I don't get to use the mortgage deduction most years.

I could take or leave that. My point was

One of those (mortgage interest deduction) incentivizes people to buy real estate (an appreciating asset) and grow their net worth.

The other (auto loan deduction) incentivizes people to buy a depreciating asset and grow their level of debt.

infinity ag said:

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deddog said:

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Bad Trump. Government choosing winners and losers is a bad idea.
Why not do the same thing for credit card debt?

What will happen is that car companies will raise prices even more, and people will buy even more cars they can't afford.

This is Clash for Clunkers, Part 2.

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Too late to bellyache about this.
It has gone on for decades and decades.

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Making things worse is not the right way forward.
This is populist and will make things worse.

94chem said:

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I buy used cars, and I pay cash. Not really interested in subsidizing your loan.

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ts5641 said:

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deddog said:

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Bad Trump. Government choosing winners and losers is a bad idea.
Why not do the same thing for credit card debt?

What will happen is that car companies will raise prices even more, and people will buy even more cars they can't afford.

This is Clash for Clunkers, Part 2.

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I'm not turning down any tax cuts. We pay WAY too much in taxes. Tax cuts are good.

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This is not a tax cut.
You are subsidizing somebody else's loan. It's bad economics.

'Any tax cut is a good tax cut. Take whatever you can get."
- Sid Farkas

Sid Farkas said:

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'Any tax cut is a good tax cut. Take whatever you can get."
- Sid Farkas

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Only if you buy an American car.
And you will be paying for everybody else's "American" car long after your loan is done.

It's not that high.


I want a flat tax but will take any cut I get. IRS bends me over.

I don't see the deduction on car loan interest as much of a factor. Very few low to middle class income folks itemize deductions and higher income people that might, won't get too excited about this small deduction, if they even finance a car purchase.

Probably not worth doing - just more tax code complication.