Mikulski: Deduct Interest on Car Loans
Maryland Sen. Barbara Mikulski (D) today unveiled a proposal to allow car buyers to deduct the interest on car loans and sales tax from their income taxes as a way to help the ailing U.S. auto industry.
Under Mikulski's plan, individuals who make no more than $125,000 a year and families who earn no more than $250,000 a year would qualify.
She said the tax break would be part of the stimulus package and estimates it would cost a total of $2 billion to $3 billion.
Mikulski, who appeared at car dealership in Bethesda today, said: "My amendment is not limited to American cars. If you were to buy a car, we're here to help you regardless of the logo that's on the car. We believe that this is good economics because it stimulates demand, it helps all the way through and it also is good for the environment and good for the family's bottom line."
General Motors has said it is in danger of running out of money next year if it doesn’t get government help, and Ford and Chrysler appear to be close behind. All have requested government assistance and the Democratic leadership in Congress and President-elect Barack Obama have said they will help.
--Thomas Heath
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November 12, 2008; 1:16 PM ET
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Posted by: MPatalinjug | November 12, 2008 1:58 PM | Report abuse
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Yonkers, New York
12 November 2008
As a condition for the Federal government bailing out General Motors, Ford, and Chrysler, Treasury Secretary Henry Paulson should ask all top executives and the boards of these failed companies to resign effective immediately.
Then going by the suggestion of Thomas L. Friedman, Mr. Paulson should call Steve Jobs and ask him to run GM for a year; call Bill Gates and ask him to run Ford for a year; and call Ted Turner to run Chrysler for a year.
Additionally, give these three proven successful executives the right to nominate their respective boards, subject to the approval of the Secretary of the Treasury.
With these critical changes in the top management of Detroit Three, it is just possible that they could be turned around. If anybody can turn them around, these three gentlemen could do it.
Mariano Patalinjug
MarPatalinjug@aol.com