Give Incentives For Free Markets, Not Bailouts
Congressman Doug Lamborn has introduced legislation to bring free market incentives to help the troubled auto industry. HR 7298 would offer consumers a $10,000 tax deduction when they purchase a new vehicle with final assembly in the United States.
"That's a significant savings for a family, and it may be just the incentive they need to help them purchase a new vehicle. My bill is not a panacea for our country's economic challenges, rather an attempt to offer up a substantive alternative to another taxpayer bailout. As everyone knows, automakers aren't selling cars. Instead of writing them a check, my bill could help them move inventory." - Congressman Doug Lamborn (CO-05)
Additionally, HR 7298 would help small businesses by giving them more generous tax incentives for buying vehicles and durable goods such as computers and software. Under Section 179 of the federal tax code, expensing limits would double, going from $250,000 to $500,000. The higher, phase-out amount also increases. This bill would lock in the new tax savings for small businesses by making these new, higher limits permanent, and indexed to inflation.
Expanding Section 179 limits on capital goods purchases will stimulate acquisition of goods by small businesses, which can help improve the bottom line for automakers and small businesses.
This short term stimulus would be made available for the balance of tax year 2008, 2009, and 2010.