A new boost for automakers and car dealers has been added to the stimulus package before the Senate, reports the Los Angeles Times. The amendment—made on the same day that US car makers reported their worst sales in 27 years—would create an income tax deduction for both sales tax on new vehicles and interest on new car loans.
Tax breaks would be retroactive to Nov. 12, 2008. A family could save about $1,500 on a $25,000 car under the plan. Critics say the proposal, which would have to pass a House-Senate conference committee even if the Senate passes the stimulus package, will encourage consumer debt and won't work to boost car sales.
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