I mean, this tax credit COULD be useful if it’s used to target less gas efficient or more polluting vehicles, but this is…well, stupid.
What’s next; deducting interest on TV purchases?
RIP_Soulja_Slim on
As is always, this sub seems to be a magnet for some of the absolute worst reporting possible.
Did Bessent make a statement today about auto loan deductions? Sure. Is it a “bombshell”? I guess only if you haven’t been paying any attention.
The up to $10,000 deduction on auto loan interest for purchases of newly produced American vehicles was part of OB3. This isn’t new nor is it a bombshell, and more importantly the treasury secretary cannot unilaterally just create a tax credit lol. Those need to be written in to law.
Nope, what’s happening here is that Bessent just tweeted out some PR on this yesterday, a reporter must have seen that and completely forgotten that tax changes must be passed by congress, then went and wrote an article about this brand new “bombshell” without doing a single bit of research. Then, because journalism is lazy as fuck several other outlets just picked up this article and republished it. Now here we are.
Milestailsprowe on
$10k tax deduction for buying a new car? American made or anything? I feel like this is gonna be a huge tax cut for the rich considering how high the number is. Also this is a tax bomb
McCool303 on
Dumping more fuel on the K shaped economy. How is this going to help anyone in the middle and lower classes that can’t just go out and buy a new car. Just seems like a reach around here for Elon.
novastar17 on
obviously this isnt going to happen but if it does, dealerships will just increase the cost of their cars, randomly, by 10k, it will not actually help things, it will just make cars more expensive
Obvious_Chapter2082 on
This isn’t a “bombshell”, it was put into effect in the OBBBA 6 months ago. Treasury Regs have yet to be released on the tax provision, so I assume they’re coming soon and that’s what he’s referring to
KEE_Wii on
The White House has been proposing a lot in the wake of some of the worst headlines we have seen from this administration which is saying something. Most of this we will never hear about again.
nutbuckers on
so, will it have a similar downstream effect on resale prices for the “American cars” as the $7500 EV subsidies did for those vehicles? MSRP $50k, cost of borrowing… say 5% over 4 years -> $10k, offset by the deduction of $10k? So resale price will be more palatable to the initial buyer to lower by said $10k?
suboptimus_maximus on
More socialism for the automotive industry? After spending the 20th Century subsidizing most of the country’s automotive infrastructure and using taxpayer money to build their manufacturing base during World War II?
The richest man in the world is the CEO of an American auto company, surely this industry has enough money going around to just compete without subsidies, handouts and socially owned means of production?
KellyAnn3106 on
Who TF is paying $10k a year in interest on a car loan?? I bought a new car in 2024 and won’t pay anything close to that, even in the first year when the balance was the highest.
ToughDesigner7072 on
How much car and how much interest would you need to make this worth it?
I don’t see this making anything affordable.
Another example of failed trickle down giving breadcrumbs to average people while the rich keep ramping up profits with higher prices.
Deduction for interest is a farce. There should be a full car value based deduction to make it even worth talking about.
Better yet start taxing corporations fairly to reduce tax burden on common citizens and incentivize corporations to balance their activities more.
Psyclist80 on
What a dumb ass administration. I can’t believe everyday the dumpster fire gets a little bigger. Like it’s going to be an inferno by the midterms, maybe not even worth saving… Maybe that’s the plan… Trumps revenge tour is on the whole country, not just the left. So many years ahead to dig out from this cluster f…wake up America, do something!
usernamechooser on
Probably the administration giving themselves a “deduction” for ICE trucks & SUVs. In other words, a payoff scheme that taxpayers will have to pay for.
torrefied on
You would have to buy a ~$175,000 car with 66 month loan at 6% interest to max out the $10,000 deduction. Your monthly payment would be over $3,100.
And since deductions are not refundable…there are not a lot of people this would benefit.
EmmalouEsq on
But cars, but not food? A $30,000 loan for a new car would be about $300 to $350 per month in interest for 60 months at the current rates.
If Americans can’t buy food or pay for heat, they’re not going to go out and get saddled with tens of thousands in new debt. Even if they have money, the future isn’t certain.
This is what happens when the upper class is in charge. They come up with ideas that make no practical sense.
aeropl3b on
This seems like another move where the administration is showing how detached from reality they are. Affordability for most of us is about making ends meet and being able to survive more than one month of being unemployed. It is as if they are expecting people to become homeless and a new car is their next best offer.
16 Comments
So we’re incentivizing buying new cars? Because?
I mean, this tax credit COULD be useful if it’s used to target less gas efficient or more polluting vehicles, but this is…well, stupid.
What’s next; deducting interest on TV purchases?
As is always, this sub seems to be a magnet for some of the absolute worst reporting possible.
Did Bessent make a statement today about auto loan deductions? Sure. Is it a “bombshell”? I guess only if you haven’t been paying any attention.
The up to $10,000 deduction on auto loan interest for purchases of newly produced American vehicles was part of OB3. This isn’t new nor is it a bombshell, and more importantly the treasury secretary cannot unilaterally just create a tax credit lol. Those need to be written in to law.
https://www.irs.gov/newsroom/treasury-irs-provide-guidance-on-the-new-deduction-for-car-loan-interest-under-the-one-big-beautiful-bill
Nope, what’s happening here is that Bessent just tweeted out some PR on this yesterday, a reporter must have seen that and completely forgotten that tax changes must be passed by congress, then went and wrote an article about this brand new “bombshell” without doing a single bit of research. Then, because journalism is lazy as fuck several other outlets just picked up this article and republished it. Now here we are.
$10k tax deduction for buying a new car? American made or anything? I feel like this is gonna be a huge tax cut for the rich considering how high the number is. Also this is a tax bomb
Dumping more fuel on the K shaped economy. How is this going to help anyone in the middle and lower classes that can’t just go out and buy a new car. Just seems like a reach around here for Elon.
obviously this isnt going to happen but if it does, dealerships will just increase the cost of their cars, randomly, by 10k, it will not actually help things, it will just make cars more expensive
This isn’t a “bombshell”, it was put into effect in the OBBBA 6 months ago. Treasury Regs have yet to be released on the tax provision, so I assume they’re coming soon and that’s what he’s referring to
The White House has been proposing a lot in the wake of some of the worst headlines we have seen from this administration which is saying something. Most of this we will never hear about again.
so, will it have a similar downstream effect on resale prices for the “American cars” as the $7500 EV subsidies did for those vehicles? MSRP $50k, cost of borrowing… say 5% over 4 years -> $10k, offset by the deduction of $10k? So resale price will be more palatable to the initial buyer to lower by said $10k?
More socialism for the automotive industry? After spending the 20th Century subsidizing most of the country’s automotive infrastructure and using taxpayer money to build their manufacturing base during World War II?
The richest man in the world is the CEO of an American auto company, surely this industry has enough money going around to just compete without subsidies, handouts and socially owned means of production?
Who TF is paying $10k a year in interest on a car loan?? I bought a new car in 2024 and won’t pay anything close to that, even in the first year when the balance was the highest.
How much car and how much interest would you need to make this worth it?
I don’t see this making anything affordable.
Another example of failed trickle down giving breadcrumbs to average people while the rich keep ramping up profits with higher prices.
Deduction for interest is a farce. There should be a full car value based deduction to make it even worth talking about.
Better yet start taxing corporations fairly to reduce tax burden on common citizens and incentivize corporations to balance their activities more.
What a dumb ass administration. I can’t believe everyday the dumpster fire gets a little bigger. Like it’s going to be an inferno by the midterms, maybe not even worth saving… Maybe that’s the plan… Trumps revenge tour is on the whole country, not just the left. So many years ahead to dig out from this cluster f…wake up America, do something!
Probably the administration giving themselves a “deduction” for ICE trucks & SUVs. In other words, a payoff scheme that taxpayers will have to pay for.
You would have to buy a ~$175,000 car with 66 month loan at 6% interest to max out the $10,000 deduction. Your monthly payment would be over $3,100.
And since deductions are not refundable…there are not a lot of people this would benefit.
But cars, but not food? A $30,000 loan for a new car would be about $300 to $350 per month in interest for 60 months at the current rates.
If Americans can’t buy food or pay for heat, they’re not going to go out and get saddled with tens of thousands in new debt. Even if they have money, the future isn’t certain.
This is what happens when the upper class is in charge. They come up with ideas that make no practical sense.
This seems like another move where the administration is showing how detached from reality they are. Affordability for most of us is about making ends meet and being able to survive more than one month of being unemployed. It is as if they are expecting people to become homeless and a new car is their next best offer.