Cash for Clunkers are driving people into the showroom. the new problem is that there may not be enough cars since Detroit has scaled back. This got me thinking about how to create a permanent incentive for car purchases. How about no sales tax on purchasing a qualified efficient vehicle and no property tax on that same vehicle for the first four years? Wow, what an incentive, but that would be to practical. Providing real solutions to job creation would be out of the question.
Which leads to the never-ending debate. Either a national consumption tax or a flat income tax, one or the other. How about an experiment, alternate between the two on an annual basis for the net few years then compare it to the current system to see how it fares. I don’t think politicians would like that because it would obviously be successful and they would loose their biggest power tool, the tax code.
Car dealerships all over the country are bracing for a spike in sales thanks to the “Cash for Clunkers” program. However,Â some car dealers said they fear the program could end up being a victim of its own success.
The Federal Government is offering a credit of up $4,500 off the purchase of a fuel efficient and environmentally sound car or truck in exchange for old cars.