SocraticGadfly: No, no, no to car-buying stimulus

February 04, 2009

No, no, no to car-buying stimulus

Congress allowing the interest on new car payments as an income-tax deduction is about the worst middle-class targeted deduction since the one on which it’s modeled – the deduction for mortgage interest.

And, long-term, this could be much more pricey than Congress is estimating, methinks.

Beyond that, overlooked in the focus on the housing bubble, the car industry also “bubbled” due to too many people getting better deals on car loans, and for more pricey cars, than their credit history warranted.

I really, really, don’t like the idea of reinflating bubbles like this.

No comments: