Richard Read just reported that the Senate passed car buyer-friendy legistlation yesterday, aimed at easing the financial burden of getting into a new car. Well, if Michigan Senator Debbie Stabenow gets her way, the deal will get even sweeter for owners of aging autos; they will be able to get up to $10,000 towards the purchase of a new U.S.-made vehicle via proposed legislature dubbed 'Cash For Clunkers.'
In all, the plan would cost the government nearly as much as the tally for recent federal bailouts of Chrysler and General Motors: $16 billion. That money would send 1.5 billion clunkers to the crusher and give up to $10,000 towards individuals who buy a U.S.-made vehicle that achieves better mpg than the clunker trade-in. The fine print stipulates that only families making $75,000 or less (gross adjusted income) will qualify.
Co-sponsor of the bill is Democrat Tom Harkin from Iowa. Cash For Clunkers is proposed as an amendment to the Senate stimulus plan that has already grown to an astonishing $900 billion.