Manzullo & Upton: Tax Credit to Purchase New Vehicles Would Stimulate Economy, Create Jobs
Washington,
Jan 15 -
U.S. Reps. Don Manzullo (R-IL) and Fred Upton (R-MI) today introduced legislation to stimulate the economy and create jobs by giving Americans tax incentives to purchase cars and trucks.
The Get America Moving Again Act of 2009 (HR 550) would bolster American manufacturing and spur vehicle sales and production by giving Americans tax credits of $5,000 to purchase a new vehicle and $2,000 to purchase a used vehicle through Dec. 31, 2009. The tax credits would be cut in half in 2010 and expire on Dec. 31, 2010. The tax credits would be limited for vehicles that cost under $50,000 and would only be allowed for households with an adjusted gross income of $250,000 or less.
The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16.2 million in 2007 to 10.5 million in 2008 removed $175 billion directly from our economy and has been one of the leading causes of America’s economic downturn and huge job losses.
“If we can get cars and trucks to start selling again, inventory will move from factory lots and dealers’ showrooms and manufacturing can start again. It pays salaries of all the vehicle assembly workers, dealers, and employees, and their thousands of suppliers. It replenishes local and state sales tax receipts. It restarts manufacturing and supply chains and the economy begins to boom again because vehicles are the second biggest consumer item after housing,” said Manzullo, co-founder and co-chair of the House Manufacturing Caucus.
“Folks are struggling in Michigan and across the nation – and this measure provides families in Middle America a helping hand as they seek to replace their older, gas guzzling vehicles, with newer, more fuel efficient cars. Encouraging folks to buy now will also help our nation’s automakers start selling vehicles again and create jobs, all the while boosting our ailing economy. This legislation will help put families and the nation’s economy back on the road to recovery,” said Upton, co-chair of the Congressional Auto Caucus.
Manzullo and Upton are also working on a second bill that will move the tax credit concept to a voucher system so that consumers can see the immediate benefit of the incentive at the point of sale of a vehicle.
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