[MandoMan]

Originally Posted by Michael G.

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

There seems to be quite a large difference between “wanting to bring back deductions” and actually getting such a law through Congress. Promised to us last year was:
No tax on tip income,
No tax on Social Security income for those with extra money coming in,
Higher deduction limits for real estate taxes.
However, despite wishes and promises, those things turn out to cost a lot more than one might think, and the money lost to cutting those taxes has to come from somewhere.
Where could that money come from? The government could stop returning IRS income tax money to the 40% at the bottom who pay no federal income tax. That would be pretty unpopular with a lot of voters. It could revoke the years of tax cuts that have primarily benefited those who make a lot more money than we do. That would be unpopular with people who can make million dollar contributions to inaugural ball committees. Congress could pay for it all by simply stopping the standard deduction on federal income taxes, letting people pay federal taxes without those deductions, as happens in states that charge state income taxes. That would be unpopular with everyone making enough so that those thousands of dollars we get back every year matter—95%. It would certainly raise my taxes a lot, yet it wouldn’t be considered a tax hike.
Or, we could charge tariffs on everything imported from other countries, claiming that isn’t a tax on US but on the other countries. However, given that it will raise sticker prices for a huge percentage of things we actually buy, it will have the same effect as a tax. To the extent that we buy things made overseas, WalMart shoppers, this will hit us pretty hard, especially those of us who work hard or did and spend most of our income instead of investing it. Perhaps a deduction for car loan interest could come out of that. But that may not work if tariffs come and go at whim.
So, don’t hold your breath.

[retiredguy123]

Originally Posted by MandoMan

There seems to be quite a large difference between “wanting to bring back deductions” and actually getting such a law through Congress. Promised to us last year was:
No tax on tip income,
No tax on Social Security income for those with extra money coming in,
Higher deduction limits for real estate taxes.
However, despite wishes and promises, those things turn out to cost a lot more than one might think, and the money lost to cutting those taxes has to come from somewhere.
Where could that money come from? The government could stop returning IRS income tax money to the 40% at the bottom who pay no federal income tax. That would be pretty unpopular with a lot of voters. It could revoke the years of tax cuts that have primarily benefited those who make a lot more money than we do. That would be unpopular with people who can make million dollar contributions to inaugural ball committees. Congress could pay for it all by simply stopping the standard deduction on federal income taxes, letting people pay federal taxes without those deductions, as happens in states that charge state income taxes. That would be unpopular with everyone making enough so that those thousands of dollars we get back every year matter—95%. It would certainly raise my taxes a lot, yet it wouldn’t be considered a tax hike.
Or, we could charge tariffs on everything imported from other countries, claiming that isn’t a tax on US but on the other countries. However, given that it will raise sticker prices for a huge percentage of things we actually buy, it will have the same effect as a tax. To the extent that we buy things made overseas, WalMart shoppers, this will hit us pretty hard, especially those of us who work hard or did and spend most of our income instead of investing it. Perhaps a deduction for car loan interest could come out of that. But that may not work if tariffs come and go at whim.
So, don’t hold your breath.

Doesn't the Government just borrow the money and raise the national debt?

[crash]

Originally Posted by Michael G.

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

You would be able to deduct the interest only if you exceed the standard deduction. Not too many do these days at $25,000 for a couple.

[talonip]

Originally Posted by Michael G.

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

Tesla

[Bill14564]

Originally Posted by crash

You would be able to deduct the interest only if you exceed the standard deduction. Not too many do these days at $25,000 for a couple.

That will depend on how the law is changed.

One way would be as you mentioned, car interest would be part of your itemized deductions which would then need to exceed the standard deduction.

The other way would be to subtract the interest directly from your income outside of itemization.

Logically, it ought to be the former but ...

[airstreamingypsy]

My Mercedes was made in Alabama. (I was shocked) Glad I don't have a Rolls. <g>

[TerriFriend]

I think is meant for all cars with American businesses. For instance, Ford, Chevy, etc. I bet some of those, or many parts for those, are still made in other countries, but if the incentive is to increase revenue for American companies, maybe they will bring all production to the US, especially if they will get a tax break by doing so. You will not get a tax break for Benz, Audi, Toyota, Volkswagen, Mini Cooper, etc. because their makers are not in the US.

Originally Posted by Michael G.

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

[DrHitch]

If such a law ever passes, you will still have to accumulate enough interest expense to be above the standard deduction....getting enough items on schedule A to exceed the standard deduction is a lot tougher to do since the IRS raised the default

[Bill14564]

Originally Posted by TerriFriend

I think is meant for all cars with American businesses. For instance, Ford, Chevy, etc. I bet some of those, or many parts for those, are still made in other countries, but if the incentive is to increase revenue for American companies, maybe they will bring all production to the US, especially if they will get a tax break by doing so. You will not get a tax break for Benz, Audi, Toyota, Volkswagen, Mini Cooper, etc. because their makers are not in the US.

One bill that has been introduced specifically calls out the location of final assembly and has no mention of company ownership or incorporation.

If the car rolled off a boat then it would not be included while if it rolled out of an assembly plant within the US it would. This may leave open the possibility of cars without bumpers or windshield wipers rolling off a boat and into a plant for final assembly where the bumpers and wipers are attached thus making them eligible.

[Michael G.]

Originally Posted by USOTR

The next question is can American auto makers compete in a world market in quality of workmanship and pricing. I believe they can as Tesla is doing it and making a profit while doing it nicely.

Their making a profit producing a product that is 50% junk.
That profit wouldn't mean anything if people don't buy the junk.

[Justputt]

Originally Posted by Topspinmo

Where else do you think batteries are made and made cheap not under control of EPA. Nothing like going across southern border and letting the polluted air drift to north north east.

Not sure how much longer that will be when Tesla moves to the Na based batteries, MUCH cheaper. Not a big fan of EVs, but we purchased a Pathfinder (made in TN) and would consider a Tesla Model 2 later this year when released, since the release price sounds like it'll be in the $20k range. That would be great for running around locally, beaches, parks, Disney/Universal/Seaworld/etc.

[Cliff Fr]

Originally Posted by Topspinmo

Just want we need more tax breaks for few..

The purpose if it is to increase demand for car assembled in the USA which us a good thing

[midiwiz]

Originally Posted by Michael G.

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

it's not completely, it applies to cars coming out of a plant in the US.

[mikempp]

Originally Posted by USOTR

Unions demanding livable salaries, broke the tritonal American (GM, Ford and Chrysler) car builder. For them to come back to building in the US they would have to build new factories that are like Tesla automated with human assist factory's. This is not an overnight process and their new factory development would be years out. The next question is can American auto makers compete in a world market in quality of workmanship and pricing. I believe they can as Tesla is doing it and making a profit while doing it nicely.

Trade laws are what sent jobs overseas. Only new trade laws will bring them back.