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Senate approves tax break for auto loan interest

Rob

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Senate approves tax break for auto loan interest

Harry Stoffer
Automotive News
February 3, 2009 - 6:00 pm ET

WASHINGTON -- The U.S. Senate voted today to make loan interest and sales taxes on vehicle purchases deductible from federal income taxes.

The proposal, championed by the National Automobile Dealers Association, was added to an economic stimulus bill under debate in the Senate. The vote was 71-26.

The provision was not in a House-passed version of the more than $800 billion package of spending increases and tax cuts.

A conference committee will decide whether the provision stays in. The bill is a top priority of President Barack Obama.

If the measure passes, taxes on auto loans will be deductible for the first time since 1986.

The provision on deductibility of loan interest is the first significant measure aimed at getting consumers back into showrooms and buying vehicles to get action from Congress. NADA says the measure will save consumers about $1,500 on a $25,000 vehicle.

Some experts have criticized the provision for not having enough up-front punch. Too many worried would-be buyers aren't thinking ahead to cutting future tax bills, they argue.

But the measure is a significant incentive and NADA had to focus on what could be accomplished politically, an organization spokesman said today.
 

b_pappy

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I was just reading this over on Automotive News. This is great if it passes, especially with the new Camaro right around the corner... now delayed till March I guess. Anyhow, good news if it gets approved.
Bruce
 

Lola's Mom

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Hey ..... we used to be able to do that .... years ago .... We also could deduct the interest from our credit card accounts ..... So, it looks we are just be given back what we used to have ..... ridiculous. :pat:
 

standby-V

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Sales tax on autos have been there all along or my tax consultant doesn't know what he is doing.
Yes they did take away interest deductions, that's why everyone was using their home equity lines to buy new cars. I hope it passes for future use and for my daughters sake. It won't help me cause I own my V.
Hey ..... we used to be able to do that .... years ago .... We also could deduct the interest from our credit card accounts ..... So, it looks we are just be given back what we used to have ..... ridiculous. :pat:
 

Little Woman

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Hey ..... we used to be able to do that .... years ago .... We also could deduct the interest from our credit card accounts ..... So, it looks we are just be given back what we used to have ..... ridiculous. :pat:
I was thinking the same thing. I hope it does get passed. IMO they should have never done away with it. :dunno:
 

Lola's Mom

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Don't you feel "stimulated" yet, mswaim? :D When I saw where some of that $$ was going, it just makes me wonder ..... like .... how can giving more educational GRANT money out create more jobs?? It seems that the students should be out getting a job to go to school. Not the other way around. :squint: I listen to the talking heads - but none of it ever makes any sense. :willy_nilly:
 

First Robin

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Interest deductions do nothing for those of us that pay out our hard earned CASH when we purchase a vehicle. All this stimulas is doing is putting this country further in debt. I feel sorry for our grandchildren and great grandchildren. If these people we are sending to D.C. would just read our Constitution they would see this is totally illigal and most of them are lawyers, guess they were asleep in class when the Constitution was being taught. Besides that, once they become a lawyer they are automatically a member of the Judicial Branch of Government and we have in the Constitution a seperation of the Branches of Government. No lawyer should ever be allowed to run for the House or the Senate. Just my two cents worth today. First Robin:patriot:
 

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