Thursday, August 13, 2009

Cash for Clunkers: Another Example of Discriminatory Government.

I know a fellow who drives a late 1990s Honda Civic. Even with 193,000 miles on the odometer, his little Honda gets 35 mpg on the highway and 28 mpg around town. It still passes emission testing at levels comparable to when it was new.

For more than a decade, this gentleman has been driving “green”, conserving resources and polluting less than the average car owner.

Despite 11 years of stalwart service, the Honda is growing very weary. It needs struts and new tires. Its radiator has been repaired several times, and the hoses are old and showing signs of cracking. There’s too much play in the steering and the stereo quit working almost a year ago. It’s time to put the faithful Civic out to pasture.

My friend wants to buy a new Civic. Unlike those driving old gas guzzlers, he won’t get any help from the government. Indeed, “green” car owners get nothing should they desire to purchase a new fuel efficient car to replace a like vehicle.

Rather than reward those who have been conserving resources, the Congress and Senate have decided to reward those who have consumed far greater amounts of fuel and generate more pollution.

Why does this not surprise me? There’s nothing unusual in government getting it ass-backwards.

What upsets many is that the feds are taking up to 3 billion of our tax dollars and passing them along to a select class of citizen. It is abundantly clear that the government is discriminating against those citizens who attempted to conserve fuel and reduce pollution by already driving “greener” vehicles. The program is purely arbitrary.

I know of one driver who was turned down for the rebate because his rusty old car was rated 1 mpg too high.

Adding to the silliness of the Cash for Clunkers program is the fact that many of the cars and trucks being traded in are destined for the junk yard in the very near future anyway.

There is a better and very simple solution.

Rather than discriminate against the bulk of the driving population, why not make every taxpayer eligible?

First, allow for a tax deduction of state and local sales taxes on all new vehicle sales. This will stimulate the auto industry and help family budgets.

Second, offer rebates of $1,000 towards the purchase of any new vehicle. If the new vehicle happens to get 5 mpg more than the old one, double the rebate. 10 mpg better? Triple the rebate. Now everyone (consumers and the auto industry) can reap the benefit and tax dollars will be evenly and fairly distributed. Everyone will have an opportunity to use the program. Many will not, because they don’t want or need a new car. Perhaps they don't want to spend money on a new car in the current economy. At least they have an option to exercise. As it works now, the vast majority of taxpayers have no option whatsoever.


What about those “clunkers”? They will be sold or traded in. In a few years, most will find their way to being junked for scrap, and at no taxpayer cost.

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