Senate Backs Tax Breaks for Car Buyers in Stimulus

[one...two...tree 2,762]

WASHINGTON -- The Senate voted Tuesday to provide tax breaks to spur new auto purchases, but turned back a proposal that would have broadened President Barack Obama's economic-stimulus package to confer a one-time tax break on U.S. multinational corporations.

The $11.5 billion auto amendment, adopted 71-26, would give an income-tax deduction to car buyers for both sales taxes and interest payments on auto loans. The action applies to purchases of foreign and domestic autos, but reflects a broad desire on Capitol Hill to shore up the shaky U.S. industry.

"Everyone wants to save auto manufacturers, but no matter how much government aid we give to the Big Three auto makers, they can't survive if consumers don't start buying cars," said Sen. Barbara Mikulski (D., Md.).

The action comes a little more than a month after the Bush administration committed $17 billion to keep General Motors Corp. and Chrysler LLC afloat, and amid expectations the Obama administration will be forced to take additional action this spring to prop up the industry.

Approval of the amendment dramatized the competing tensions roiling the Senate this week in debate on the package, which has now swelled to just over $900 billion, as some lawmakers pressed for wider action to aid the struggling economy and others looked for ways to scale back spending in the bill of more than 600 pages.

The chamber, voting 55-42, rejected a $28.6 billion proposal that would have dramatically lowered the corporate tax on overseas income. The measure, pushed by a wide coalition that includes technology and pharmaceutical companies, would have allowed companies to bring profits back into the U.S. at a one-time 5.25% tax rate, avoiding the regular corporate tax rate of 35%.

Supporters said the measure would free up capital to create jobs, easing the credit crunch that is constricting business activity. But critics countered the measure was simply a windfall for corporations that move jobs abroad, and pointed that a previous tax holiday in 2004 didn't result in significant new investments in the U.S.

The Senate also voted 52-45 to strip out of the broader recovery package a tax break benefiting Hollywood movie studios. The measure would have allowed the companies to write down 50% of their 2009 production-equipment costs. Republicans said the credit would have cost $246 million, and represented a waste of taxpayer dollars.

Late Tuesday evening, the Senate, by voice vote, approved a $6.5 billion measure boosting research funding for the National Institutes of Health.

Amid the ebb and flow Tuesday, a high-profile amendment that would have added $25 billion to the bill for highway, mass-transit and sewer construction stalled on the Senate floor. Supporters said the measure, pushed by Sen. Patty Murray (D., Wash.), would have created more than 600,000 jobs alone. "Our economy needs a jolt," she said.

But on a mostly party-line 58-39 vote, the measure fell two votes short of the 60 votes needed to overcome Republican objections. The vote underscored the continued ability of Republicans, even in the minority, to frustrate the Democratic agenda. It also signaled that additional accommodations will be needed to ensure wider support when the broad package comes to a final vote, expected later this week.

At the White House Tuesday, Mr. Obama made a strong appeal for action, saying that "the vast majority of the investments in the plan" will be made in the near term, creating jobs and helping cash-strapped states.

But his opponent from 2008, Sen. John McCain (R., Ariz.), dismissed the measure as "just another spending bill" that provides "giveaways for the special interests and corporate high rollers."

With criticism mounting, Senate Budget Committee Chairman Kent Conrad (D., N.D.) said he is scouring the bill for projects that don't meet the test of job creation, with the goal of advancing an amendment that would strip "in excess of $50 billion" from the package.

"That's our intention," said Sen. Conrad, who is reaching out to a wide number of senators, including Republicans, in preparing the amendment.

—Corey Boles contributed to this article.

http://online.wsj.com/article/SB123367074086743407.html

[w¡n9Nµ7 §£@¥€r 123]

The $11.5 billion auto amendment, adopted 71-26, would give an income-tax deduction to car buyers for both sales taxes and interest payments on auto loans. The action applies to purchases of foreign and domestic autos, but reflects a broad desire on Capitol Hill to shore up the shaky U.S. industry.

I wonder if that applies to existing auto loans.

I wonder if maybe I should read the whole article first.

Naah.

[Cherel & Bob 0]

Maybe it is time to let those over payed union employees finally find a job that requires them to work a full shift. Maybe it is time that the US automakers finally build reliable cars that compete with the foreign brands. Maybe we should stop bailing out these companies that have allowed unions to make them unable to compete.

Bob

[w¡n9Nµ7 §£@¥€r 123]

Maybe it is time to let those over payed union employees finally find a job that requires them to work a full shift. Maybe it is time that the US automakers finally build reliable cars that compete with the foreign brands. Maybe we should stop bailing out these companies that have allowed unions to make them unable to compete.

Bob

this deduction applies whether you buy foreign or domestic.

But on a mostly party-line 58-39 vote, the measure fell two votes short of the 60 votes needed to overcome Republican objections.

Odd, seeing how this reads like it was tailor made for the country club Republican crowd.

The tax break would only go to families making less than $250,000 a year, and would only apply to interest on loans up to $49,500.

[mawilson 2,133]

The action applies to purchases of foreign and domestic autos, but reflects a broad desire on Capitol Hill to shore up the shaky U.S. industry.

#### that.

[w¡n9Nµ7 §£@¥€r 123]

The action applies to purchases of foreign and domestic autos, but reflects a broad desire on Capitol Hill to shore up the shaky U.S. industry.

#### that.

Don't be hatin'.

[one...two...tree 2,762]

The action applies to purchases of foreign and domestic autos, but reflects a broad desire on Capitol Hill to shore up the shaky U.S. industry.

#### that.

Don't be hatin'.

Yep. The trade unions are already upset over Obama's request to buy American.

[mawilson 2,133]

The action applies to purchases of foreign and domestic autos, but reflects a broad desire on Capitol Hill to shore up the shaky U.S. industry.

#### that.

Don't be hatin'.

Yep. The trade unions are already upset over Obama's request to buy American.

It wasn't Obama's request - Obama is against the "buy America" provision.

[w¡n9Nµ7 §£@¥€r 123]

That's cuz he's a frackin' Mooslem.

[mawilson 2,133]

That's cuz he's a frackin' Mooslem.

Mooslems have nothing to sell except oil and their hatred of Israel.

[Jasman0717 9]

I'm certainly not buying a new car anytime soon

[mawilson 2,133]

I'm certainly not buying a new car anytime soon

I like the new Dodge Challenger

[w¡n9Nµ7 §£@¥€r 123]

I'm buying this next:

[one...two...tree 2,762]

I'm certainly not buying a new car anytime soon

I like the new Dodge Challenger

Nice design. It's too bad the Detroit designers often miss the mark on coming up with great car design.

[mawilson 2,133]

Nice design. It's too bad the Detroit designers often miss the mark on coming up with great car design.

Yeah... when gas was $4/gallon, they sold gas guzzlers. Now that gas is back to $1-2/gallon,

they have 20 hybrids to sell, but no-one's buying.