I had thought that this was so far out that it would not be seriously discussed. Not the first time I’ve been wrong (nor the last, I’m certain).
Consumers could receive rebates of up to $4,500 for turning in their gas-guzzling cars and trucks for more fuel-efficient vehicles under a House proposal.
President Barack Obama has urged Congress to approve consumer incentives for new car purchases as part of the government’s efforts to reorganize General Motors Corp. and Chrysler LLC through the bankruptcy courts.
The House proposal set for a floor vote Tuesday is aimed at stimulating car sales during a bleak period for the auto industry while increasing the nation’s fleet of cars that get more miles to the gallon. GM and Chrysler have received billions of dollars in government aid, but the entire auto industry has watched car sales plummet during the past year. In May, overall sales were 34 percent lower than a year ago.
The vehicle scrappage bill has been under negotiations for months as lawmakers try to find a solution that boosts car sales while providing environmental benefits. Proponents have pointed to similar programs in Europe that have enhanced auto sales.
Who will be paying for all of this? You got it: Those of us who pay all sorts of taxes. Then there are those who make their money in the used/recycled auto parts markets. What will this do to their businesses? I think I just saw the Law of Unintended Consequences (LUC) duck into that doorway across the street.