Comments on: “Cash for Clunkers” No Good in Present Form

By: Alex

Alex — Fri, 29 May 2009 19:49:00 +0000

Jay,

Thanks for your comment.

The only critique I’ll make is the idea that people who don’t pay personal income tax have no claim to government spending as “their” tax dollars.

While they may not pay for this handout to auto buyers/dealers/makers directly with income taxes they pay, they do pay by absorbing the opportunity cost of this government spending, which is other government spending.

If this money weren’t given away to automakers etc., it could be used instead for green jobs training, efficiency weatherization & retrofitting for low-income households, more teachers, better roads, or any number of things that would be enjoyed by many more people than will be the cash-for-clunkers rebates.

Additionally, all consumers in effect pay the income tax even if they do not technically pay income taxes to the IRS, as the cost of all taxes is passed on through the economy, so when anyone pays for a service – be it a haircut, an oil change or a lawyer – they are indirectly paying income taxes.

By: Jay

Jay — Fri, 29 May 2009 02:36:01 +0000

This program does discriminate … the same way the housing subsidy and the mortgage restructuring discriminates against those that either dont have mortgages or bought houses within their means.
The program for once doesnt discriminate (yet!!) against the people who give the most taxes (you might call them the rich people). Poor people barely pay any taxes so they shouldnt worry about “their tax money” going to rich people. For a change a policy that helps the economy and is not a handout to poor or irresponsible people.
60% of individual federal income tax is paid by 12% of the people who make $100k or more.
http://www.irs.gov/taxstats/indtaxstats/article/0,,id=96981,00.html

By: matt

matt — Fri, 15 May 2009 20:55:34 +0000

Its interesting to me how these big corporate handouts get branded as “green jobs” and “building a new clean energy economy” and people in the climate movement just eat it up with a spoon. This is corporate welfare plain and simple. It gives billions to the very companies responsible for the climate crisis. Imagine what that money could do if were spent on public transportation and bike programs etc. rather then enriching climate criminals

By: Kevin

Kevin — Wed, 13 May 2009 23:05:58 +0000

Just to clarify one point, under the proposed program you would not be able to buy a $2000 clunker and then immediately trade it in, at least not one from a junkyard if that’s what you’re thinking. Only vehicles that have been registered and in use for at least 1 year would be eligible.

http://www.usatoday.com/money/autos/2009-05-11-chrysler-gm-cash-clunkers_N.htm?csp=34

You could still try to exploit the program by buying a vehicle cheap that was already registered for the past year, but in that case the program is actually achieving its goal of getting a (slightly) less fuel efficient vehicle off the road.

By: Lou

Lou — Wed, 13 May 2009 19:58:47 +0000

What’s that smell? Our federal government at work. Perhaps environmentalists should form a union. That might get the attention of a few of our elected “leaders.” The longer the discussion on this bill drags out the worse (environmentally speaking) it will be. Gotta save those auto worker jobs…

By: AnnaK

AnnaK — Wed, 13 May 2009 18:23:26 +0000

Solid. Every damn congressman in that committee should read this.