Posted on 06/10/2009 2:39:21 AM PDT by Daffynition
WASHINGTON -(Dow Jones)- The U.S. House of Representatives approved legislation Tuesday aimed at stimulating auto sales by providing cash vouchers to consumers to trade in gas-guzzling cars for newer, more efficient models.
The 298-119 vote culminates months of wrangling among lawmakers over the details of a so-called "cash for clunkers" program, pushed mainly by Democrats and President Barack Obama. Most members voting "yes" were Democrats, while all but a few of the "no" votes came from Republicans.
The legislation aims to halt a steep slide in auto sales. Proponents pointed to a program in Germany credited with spurring a double-digit spike in car purchases there.
Rep. Sandy Levin, D-Mich., said the U.S. government's efforts to restructure the auto industry, which is costing tens of billions of dollars, "won't work if there isn't work on the demand side."
The legislation, which still must be passed by the Senate, faces hurdles, including questions about where to find the money for the one-year, $4 billion program. Some lawmakers have suggested the money could come from the economic- stimulus package passed earlier this year.
The House bill, authored by Rep. Betty Sutton, D-Ohio, would authorize the administration to provide cash vouchers of as much as $4,500 to consumers who trade in older vehicles and then lease or purchase a newer, more energy- efficient one. It would require the older vehicle to have a fuel economy of 18 miles per gallon or less and the newer vehicle to get at least 22 mpg. The voucher would be worth $3,500 if the newer vehicle achieved a 4 mpg increase in fuel economy. If the mileage of the new car was at least 10 mpg higher than the older vehicle, the voucher would be worth $4,500.
The older vehicles would be dismantled. [snip]
(Excerpt) Read more at money.cnn.com ...
Yes she was acting like her 18 year old car has just been waiting for the falsemessiah so she can think she will get something for an even bigger POS car.
It must be, even China is hesitant to load us any more money.
Who can afford this with no job or cut hours?
From SEMA:
Bill sponsors want to destroy four million pickups and SUVs over the next four years.
The program will fail to achieve its goal of improving fuel efficiency and stimulating car sales, but will increase unemployment and the cost of used cars and parts. Here’s why:
• Given the minimal $1,500-$4,500 voucher value, the program will lure rarely-driven second and third vehicles that have minimal impact on overall fuel economy and air pollution. This is not a wise investment of tax dollars.
• The program will reduce the number of vehicles available for low-income individuals and drive up the cost of the remaining vehicles and repair parts. This is a basic supply-and-demand reality.
• The program will remove the opportunity to market specialty products that are designed exclusively for the targeted pickups and SUVs, including equipment that increases engine performance and fuel mileage. Congress will be enacting a program to eliminate jobs and reduce business revenues in the automotive aftermarket.
• The idea that the trucks and SUVs must be scrapped in order to save energy is irrational. The program’s “carbon footprint” does not factor in the amount of energy and natural resources expended in manufacturing the existing car, spent scrapping it and manufacturing a replacement car.
• The program fails to acknowledge driver needs, such as the ability to transport a family, tow a trailer or rely upon the performance, safety and utility characteristics associated with the larger vehicles. Instead, these vehicles will be destroyed.
• There is no evidence that the program will achieve the goal of boosting new car sales or increasing fuel mileage. Many states have considered scrappage programs in the past as a way to help clean the air or increase mpg, but abandoned the effort because they simply don’t work. The programs are not cost-effective and do not achieve verifiable fuel economy or air quality benefits.
• The program will hurt thousands of independent repair shops, auto restorers, customizers and their customers across the country that depends on the used car market. This industry provides thousands of American jobs and generates millions of dollars in local, state and federal tax revenues.
“Our members, like all business entities, are suffering the effects of the stalled economy,” said Steve McDonald, SEMA’s Vice President for Government Affairs. “In fact, for our members that market product for newer vehicles, we depend on a thriving and vibrant auto industry to create new business opportunities. We support efforts to spur new car sales. We don’t, however, support public policy efforts that we are convinced don’t work and will waste tax dollars in the process.”
Our representatives have gone stark raving mad.
Welfare Auto is starting. Who drives old, heavy junkers? Those who can't afford newer cars - the democrat base. He's working tward giving away welfare cars.
This is the real reason why Oboma (fascism) wanted to take over GM. Welfare Auto is going to be a new welfare program.
Maybe that's why Oboma chose certain dealerships to stay open and closed all the rest. Maybe they're going to be used to launder tax payer money the same way ACORN has been doing for years. It's a shell game.
Earlier I found an article that had a list of foreign and domestic cars that would qualify after this accelerated retirement [sorry, can’t find it now though], suffice to say, I wouldn’t be caught dead in any of the autos.
No matter the age? So I can turn in my 95 Chevy Blazer and get the money even though it’s worth half that? SWEET! Woo Hoo for mindless spending by democrats!
Do you get the new car tax credit too? Can you combine offers?
Beyond Flaming BESERK!! The MORONS are running Congress!
Imagine the Fraud in this Stupid Legislation! Osama Bin Ladin has to be ROTLLHAO in his Palace someplace in KENYA!
No! They already were stark Raving Mad! They just are acting on their Mental Derangement NOW!
This whole thing was the brainchild of Bruton Smith, CEO of Sonic Automotive and several NASCAR tracks including Lowes Motor Speedway.
sooo...now they’ve got to drum up bidness for “Bammymotors....sheesh...breathtaking corruption....wait’ll they get hold of healthcare...what’ll ya think they’ll pass then?!!!
I gotta call bs on this statement and the whole $4B sleight of hand...
this is discrimination against the gilbo clan as we're currently driving 2 'clunkers' that wouldnt be eligable for vouchers...a 90 Aerostar [a truck gettin 20 mpg] and a 92 marquis at 21 mpg @ 250K miles...
IOW, where do these mystery mpg figures come from on the trade-ins ??? the 15-20 yr old cafe stickers ???
more theft, pure and simple...
...of course after the new Federal sales tax, inflation, pollution tax and federal vehicle registeration you’re going to be paying MORE than you would normally....
Our whole free market system is about to fall and we seem to be in some kind of a stupor, motionless. It is happening so fast, my head is reeling. We need to vote out everyone in Washington and start over with people who respect and will follow the Constitution.
I don’t know if the purpose is to save gasoline and reduce pollution or just to be a “bread and circuses” sop to the electorate. This “free” money program will work to get people buying new cars. Few can turn down the offer of “free” money.
I’m not too concerned with gas mileage, but a lot of people do freak out about it - those with long commutes to work. I would like to trade in my 12 year old Malibu (A/C doesn’t work, other minor repairs coming soon) but I like not having a car payment to make. Maybe when my credit card debt is paid down and repair bills mount up I trade for a Ford Fusion - fairly inexpensive.
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