Chrysler Has a Plan! Federal Tax Deductions for Car Loan Payment Interest

Robert Farago
by Robert Farago
chrysler has a plan federal tax deductions for car loan payment interest

You might say that this plan– getting Uncle Sam to subsidize new car payments– is a warm-up for the main event: the big ass bailout. And you’d be both wrong and right. Right, because Detroit is using all the political leverage it can muster to extract whatever drops of sustenance it can secure from the federal teat. In that effort, Motown’s running all sorts of ideas up the proverbial flagpole, including perverting manipulating the federal tax code. And lo and behold, Toyota saluted it! “Toyota would be supportive of moves such as tax deductibility of auto loans,” ToMoCo’s U.S. Veep for corporate affairs said on his post- October-bloodbath conference call. Needless to say, GM was non-committally committed to the idea, in a general sort of way. “It’s really critical for the governments and the banks to aggressively help us to revive the credit market and facilitate consumer lending activities,” Mike DiGiovanni, a GM sales analyst, said on his conference call reported by Bloomberg. As for the “wrong” part, this measure, and the “cash for clunkers” initiative making the rounds, wouldn’t provide NEARLY enough relief for Motown’s mauled motoring mavens. But hey, you gotta start somewhere… Oh wait! They already got those $25b worth of D.O.E. low-interest retooling loans. Only not, ’cause they’re hung-up on “technicalities.” Sorry. Carry on.

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4 of 27 comments
  • Johnny ro Johnny ro on Nov 04, 2008

    it would not help with chrysler market share.

  • Kevin Kevin on Nov 04, 2008

    Sure why not? The government policy subsidizing and encouraging ever more MORTGAGE DEBT has worked out REAL freaking well for all concerned; I can't really see any problems.

  • Bertel Schmitt Bertel Schmitt on Nov 05, 2008

    @speedlaw: Exactly. I vaguely remember my CPA telling me that my then U.S. business was to lease all vehicles for a tax break unless I wanted to buy a really HUGE AND HEAVY BEHEMOTH which enjoyed special breaks (in addition to special brakes.) I trust my CPA, did as he said, and never delved in the details. What was/is that about? A guzzler relief act?

  • GS650G GS650G on Nov 05, 2008

    Yeah, let's go ahead and encourage more reckless borrowing. Great plan there.