Trump pitches making car loan interest tax deductible

[Craig Nigrelli]

DONALD TRUMP WAS DOING MORE THAN JUST TALKING ABOUT THE AUTO INDUSTRY AT THE DETROIT ECONOMIC CLUB ON THURSDAY.  HE MADE HEADLINES WHEN HE SAID HE SUPPORTS MAKING INTEREST ON CAR LOANS, TAX DEDUCTIBLE.

TRUMP COMPARED SUCH INTEREST TO INTEREST THAT AMERICANS PAY ON THEIR HOME MORTGAGES.  HOWEVER, ANY CHANGE TO THE TAX CODE WOULD HAVE TO GO THROUGH CONGRESS.

“WE WILL MAKE INTEREST ON CAR LOANS FULLY DEDUCTIBLE ”

REPUBLICANS CURRENTLY CONTROL THE HOUSE. DEMOCRATS HAVE A SLIM MAJORITY IN THE SENATE.   BUT THAT BALANCE OF POWER MIGHT CHANGE IN THE UPCOMING NOVEMBER ELECTION.

AUTO LOAN RATES ARE LARGELY DEPENDENT ON A CAR BUYER’S CREDIT SCORE.

FOR INSTANCE,  ACCORDING TO NERD WALLET,  IF YOUR CREDIT SCORE IS IN WHAT IS CALLED THE PRIME CATEGORY,  WHICH IS BETWEEN 661-AND-780,  YOU CAN EXPECT TO PAY ABOUT 7 % FOR A NEW CAR LOAN OR ABOUT 9.4 PERCENT FOR A PRE-OWNED OR USED CAR.

TRUMP’S REMARKS ON ELIMINATING TAXES COME AFTER HE MADE SIMILAR STATEMENTS ABOUT GETTING RID OF TAXES ON TIPS THAT WORKERS MAKE IN THE SERVICE INDUSTRY AND ELIMINATING THE FEDERAL TAX ON SOCIAL SECURITY BENEFITS FOR SENIORS.

BUT NOT EVERYBODY IS IMPRESSED WITH THE FORMER PRESIDENT’S OFF-THE-CUFF REMARKS ON TAX POLICY.

BRIAN RIEDL, A SENIOR FELLOW AT THE MANHATTAN INSTITUTE,  SAID “ TRUMP’S JUST THROWING DARTS AT THE POPULIST-PANDERING DART BOARD. ECONOMIC COHERENCE BE DAMNED. “

TRUMP’S REMARKS COME AS THE ECONOMY CONTINUES TO BE THE NUMBER ONE ISSUE TO VOTERS IN MANY STATES IN THIS ELECTION.   VICE PRESIDENT KAMALA HARRIS RECENTLY UNVEILED HER TAX POLICY WHICH WOULD ALSO ABOLISH TAXES ON TIPS AND BOOST THE MINIMUM WAGE FOR WORKERS WHO EARN TIPS.   I’M CRAIG NIGRELLI. FOR MORE UNBIASED UPDATES,  DOWNLOAD THE STRAIGHT ARROW NEWS APP