‘Cash For Clunkers’, Off-Road Edition
Last week I posted about the ‘Cash for Clunkers’ bill being supported by Congressman Rothman. Among other things, I wondered just how this would be paid for. Apparently, that thought had merit because the bill is working its way through Congress with only $1B of the needed $4B needed to fund the program in place. In fact, according to Heritage the program is nothing more than way of bailing out the auto industry (shock!).
After passing in the House, the stage is now set for a Senate vote to pass the “Cash for Clunkers” bill that would offer up to $4,500 to trade in a used vehicle for a new one. Although the idea sounds good on paper, we’ve outlined a number of problems with the bill: Consumers typically replace clunkers with slightly newer clunkers or used cars, the program would distort the used car market by reducing the supply of used cars at a time when demand has been increasing, the voucher exceeds charity tax deductions for used cars, the environmental benefits are dubious, and its estimated cost of $4 billion is largely unfunded:
“But the $1 billion set aside for the auto-purchase program is far short of the full cost of such an effort, estimated at $4 billion. The $1 billion is expected to fund the program through Sept. 30, the end of this fiscal year, according to two congressional sources close to the negotiations who asked to remain anonymous.
This week, Sen. Debbie Stabenow, D-Lansing, who sponsored the Senate version of “cash for clunkers” legislation, said she was comfortable with winning approval for money to start the program, with the idea that additional funding could be approved later.”
So, what else is new? Another bill to pay off special interests without the money there to pay for it. And ironically, the bill would actually undermine the very same fuel efficiency standards liberals also love.
I think we can see where this clunker of a bill is headed. Maybe this will capture it for you:
Cross-posted at Conservatives with Attitude!
June 18th, 2009 at 6:02 pm
June 19th, 2009 at 2:53 pm
I haven’t tried it yet, but I might because it looks good.
I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for lower MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate. The demand will increase prices and you’ll get a voucher from increased prices. I’m certain some markets you’ll come out even as if they never offered this voucher. It is poorly written legislation.
June 20th, 2009 at 11:53 pm
Just wanted to say that as a fellow New Jerseyian (I run an open mic website for NJ), I appreciate the effort you’ve obviously put into this site!
JerseyMic’s last blog post..Gregorio’s Market in Mays Landing on Wednesday, June 17th, 2009 (pictures!)
June 21st, 2009 at 12:28 pm
July 31st, 2009 at 12:37 pm
[...] In my initial post I questioned just how the program would be paid for – and in my second post the Heritage Foundation affirmed my concern, indicating that only $1B of the necessary $4B needed [...]