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Cash for Clunkers Passes House, Awaits Senate Vote

June 11, 2009

WASHINGTON — The U.S. House of Representatives approved a "cash for clunkers" bill last week by a vote of 298-199. The legislation would provide for rebates worth up to $4,500 for new-car buyers who trade in older, gas-guzzling vehicles.

The bill will now move on to the Senate, where a similar measure failed to reach a vote last week. Several attempts to attach cash-for-clunkers language to other legislation or win passage on its own has met with resistance from Appropriations Committee members and Senators pushing for a rider that would require higher fuel-efficiency standards.

The bill garnered bipartisan support prior to the House vote, despite opposition from Minority Leader John Boehner (R-Ohio) and Republican Whip Eric Cantor (R-Va.). President Obama has endorsed such legislation as a way to stimulate flagging U.S. new-vehicle sales.

Comments

  1. 1. karenc [ June 12, 2009 @ 01:23PM ]

    60% the cars that are currently donated to charity will now be eligible for a $3500 or $4500 voucher under the cash for clunkers program. Since the tax deduction for donating a car is only $500 or what the car sells charities won't be able to compete with the program and charitable car donation will end. A better idea is to just change the amount a person can deduct for donating their car back to the book value. That way every car is eligible, the government doesn't have to spend $4 million of our dollars giving away vouchers and trying to administer a program that is way too convoluted!

 

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