Clunker Program?

Source: Reuters

Lately it does not seem like there has been a whole lot of creativity coming out of the beltway. There has been a lot of "taking the easy way out" in regards to banking industries, automotive industries, and the like. However, today I saw some light, and it is presented in one of the worse named programs (give it time the the proposal is weeks away from seeing the floor of the House of Representatives) to date.

Reuters is reporting today that a tax incentive program is making it's way to the floor of the Senate and House of Representatives. The program is a tax incentive of up to $5,000 meant to encourage owners of older and inefficient automobiles to trade up to a new and high efficient vehicle. The program would cost approx. $2 billion, and would possibly coming out of remaining stimulus money (I'm biting my tongue on that).

I am strongly in favor of ideas like this one, which by the way similar ideas are in place in Europe. Instead of a bailout that arguably helps only a couple "groups" of people or jobs, this kind of creative plan helps many "groups" of people or jobs. Further, I encourage everyone to contact your state representative and encourage more creative problem solving and ideas like this to get us back on the road to prosperity.

Matt Kemper
YourCreditCompany.com