‘Cash for Clunkers’ Bill Mired in Senate

Joshua Duval
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The “cash for clunkers” legislation that would provide qualifying consumers with a $4500 voucher toward the purchase of a new car has been dropped from a tobacco regulation bill in the Senate, causing frustration among Michigan lawmakers.

The Senate Appropriations Committee raised objections to the legislation because it draws its funding from the $787 billion economic stimulus package, according to congressional aides. Michigan lawmakers say the legislation must be passed soon to help the ailing auto industry – especially now that word of the bill could be keeping consumers from purchasing vehicles until it passes.

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

An identical cash for clunkers bill in the House has also failed. So far, legislators have been unsuccessful in separating that legislation from a massive energy and climate bill that could take months to finalize.

Source: The Detroit News

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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.

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