A Modest Proposal

Like most Americans, I am well aware of the challenges we are facing as a nation—the price of oil, companies going out of business, massive layoffs and unemployment, stock prices plummeting, and (whether or not you actually believe it is happening) global warming. With this in mind, I put forth a proposal that I believe could be a solution to many of these problems.

I am proposing that every individual taxpayer who earns $30,000 or less per year ($60,000 or less for a married couple) should receive a tax credit in the amount of $25,000 for the purpose of purchasing a new vehicle. The credit could be pro-rated for individuals/couples who earn more than the $30,000/$60,000 limit.

The vehicle would not need to be an automobile. It could also be a truck, van, motorcycle, etc. The main criteria would be that it could be legally licensed to be driven on public roads (which would eliminate dirt bikes, 4-wheelers, etc.); it must be new; it would not need to be an American brand, but it must have been assembled in the United States; it must have a fuel efficiency rating of at least 30 miles per gallon; and it must be purchased from an American dealer (or directly from the assembly plant).

The tax credit could be used for more than one vehicle. For instance, if you purchased a car for $20,000, you would have $5000 left to buy a motorcycle. Or if you had (a) trade-in(s), that would increase your purchasing power. I would suggest that the credit could also be used to cover the cost of taxes, license and title fees, and one year of vehicle insurance. After all, the credit would be useless if the person buying the vehicle could not afford to drive it. And allowing this would mean that part of the money spent would go back to the cities and states in which the vehicle was purchased.

Putting this proposal into effect would put thousands of displaced auto workers back on the job. It would also put people laid off from companies that provide parts (such as tires, batteries, etc.) to the auto industry back to work. It would help local economies because the vehicles would be purchased from local dealers, who, in turn, would pay local taxes. Foreign vehicle makers, realizing that their cars, trucks, motorcycles, etc. are included in this plan, might be inclined to increase production here in America rather than importing products that would not be eligible for the credit.

This program would be mostly financed by income taxes and corporate taxes derived from putting these people back to work and from helping the automobile companies become profitable again. Requiring the eligible vehicles to meet fuel efficiency limits would help reduce our nation’s dependence on foreign oil. Requiring the vehicles to meet minimum fuel efficiency standards would also help to reduce air pollution.

So this is the proposal. I’m not going to write ten pages espousing the merits of this proposal. There are a number of issues that would need to be worked out--one being how long the program should last. The specific amounts I have proposed could be negotiated, but I believe the basic idea is sound. I’d like to see it put into effect.