Trump Wants to Make Loan Interest on Domestic Cars Tax Deductible Here's What Experts Think
The proposed tax deduction for loan interest on American-made vehicles is widely seen as a gimmicky carve-out that disproportionately benefits well-off taxpayers buying more expensive vehicles. Making all auto-loan interest deductible would cost the government around $61 billion over 10 years, primarily benefiting households making over $500,000. The proposal raises questions about its economic viability and potential impact on car affordability.
- This policy might serve as a Trojan horse for broader tax cuts, potentially masking the true cost of favoring high-income households with luxury vehicle purchases.
- How will the Trump administration's plan to make loan interest on domestic cars tax deductible affect the overall trajectory of automotive policy in the United States?