‘Cash for Clunkers’ bill stalls in the Senate… again

Posted: Jun 04, 2009

While UK’s scrappage program is making headlines, the U.S. Senate for some reason keeps hitting a road bump to add a “cash for clunkers” bill, a move that would boost new car sales with federal subsidies.

“There are technical details to work out and the senator continues to look for a vehicle to pass this very important piece of legislation,” Brad Carroll, a spokesman for Sen. Debbie Stabenow, a co-sponsor of the bill said.

Others said that the bill, which failed to reach agreement in the Senate earlier this month, was derailed by objections from the Senate Appropriations Committee to use money from the $787 billion economic stimulus package.

The cash for clunkers would offer up to $4,500 credits for consumers who scrap their old car with low-gas mileage and high emissions, for a new car with better fuel-economy and lower emissions. Under the program, the new vehicles would have to average 22 mpg to qualify.

- By: Omar Rana

Source: Detroit News

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kcampese

This bill would put every charity car donation program in the nation out of business since the amount of the voucher would be much greater than the tax deduction. The solution is to simply allow the charity to issue the voucher in lieu of the tax deduction. The charity would then junk the car in accordance with the bill. This way, everyone wins, the car dealer, car maker, car buyer and the charity.

neil

This is being held up by GM and Chrysler lobbyistd

They are worried that the money will filter through to other manufacturers which of course it will and in doing so jeopodise there bailout money