Trump Proposes Making Auto Loan Interest A Tax Write Off
Donald Trump recently unveiled a new economic proposal aimed at swaying voters ahead of the election by making interest on car loans fully tax-deductible—but only for cars built in the U.S.
This proposal is part of his broader strategy to support American manufacturing and deter Chinese-made vehicles from entering the market. By offering this tax deduction, Trump hopes to stimulate domestic car production while making auto ownership more affordable for American consumers.
The idea mirrors the mortgage interest deduction, allowing car owners to write off their auto loan interest, potentially saving hundreds or thousands of dollars annually. However, as with most tax deductions, the policy would disproportionately benefit wealthier individuals who can itemize their deductions. Most low- and middle-income taxpayers, who claim the standard deduction, would likely see little to no benefit.
Experts have pointed out that the plan could cost the federal government around $5 billion a year in lost revenue and would require Congressional approval to be enacted. While it appeals to many voters, especially autoworkers, it's uncertain how feasible the policy would be in practice. Additionally, its benefits are expected to skew toward high-income earners, making it less impactful for the majority of American car owners.
If elected we'll see how much support the plan garners in Congress.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the cut-throat world of IndyCar.
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Great way to kill sales as everyone waits for this to "happen"!
What about foreign brands built in the US? Or American brands built outside the country? Or a car with 51% American content?
Remember, you can't spell bone spurs without BS!