Former President Donald Trump was doing more than just talking about the auto industry at the Detroit Economic Club on Thursday, Oct. 10. He made headlines when he said he supports making interest on car loans tax deductible.
Trump compared car loan interest to interest that Americans pay on their home mortgages. However, any change to the tax code would have to go through Congress. Republicans currently control the House, while Democrats have a slim majority in the Senate. That balance of power might change in the upcoming November election.
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Auto loan rates are largely dependent on a car buyer’s credit score. The better your credit score, the lower your interest rate. A poor credit score can lead to a very high interest rate.
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. He has also advocated getting rid of the federal tax on Social Security benefits for seniors.
There are skeptics of his plans. Brian Riedl, a senior fellow at the Manhattan Institute, said Trump is just “throwing darts at the populist pandering dart board.”
The former president’s remarks come as the economy continues to be the number one issue for voters in many states. Vice President Kamala Harris recently unveiled her economic plan. She also indicated she wants to abolish taxes on tips.
