Quick! Somebody Tell China, Tax Cuts Don’t Work!
Obama ought to tell China that “we’ve tried that before” and it just doesn’t work.
China cut taxes on cars it wanted to move, and the sales of said cars shot up 25% in February!
The U.S. version of a car “tax cut” looks like this. Courtesy of the $789 Billion Porkulus.
It’s a tax deduction, not a straight-up tax rate cut. It’s gotta be a new car purchase. You can’t make more than $125k, you can’t buy a car worth more than $49,500, and you have to buy it between February 17, 2009 and December 31, 2009. Oh, and if you don’t take out a loan for the car, you will hardly feel the savings at all.
Thanks a lot.
A better idea? To keep throwing Billions at failing automakers in order to save the unions for another quarter.
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