Auto Discounts Proposed by Senate
By Tony Franklin on August 22, 2018
The American auto industry has been at the heart of most discussions involving Economy, Jobs, and Foreign Imports/Exports for the last three decades. Sen. Sharrod Brown, a Democrat from Ohio, has pulled all of those pieces together in a bill entitled: American Cars, American Jobs Act. This bill is supposed to help Americans buy cars made in America by proposing a $3500 incentive given to those who purchase new cars under a qualified five-year lease.
The American Cars, American Jobs Act additionally proposes that the special tax cut on overseas profits designated for auto manufacturers shall be revoked. Sen. Brown believes the revocation of this tax cut would pay for the program.
The bill is divided into two main pieces. First, customers who buy cars made in the U.S.A. get a discount. Second, corporations that send their jobs overseas lose a tax break. The financial incentive is clearly to make and buy American made automobiles.
There are almost a hundred automobiles that could qualify under this act, including every passenger-type vehicle made in Ohio (Sen. Brown’s home state). This list includes the Jeep Cherokee, Ford Mustang, Toyota Camry, and Mercedes-Benz C Class, as well as many others. You can view the full list here.
Rich Rankin, a UAW Director from Region 2-B, is also a strong supporter of this Act, claiming that it gives support to the American autoworkers and levels the playing field for auto manufacturers in Ohio. Sen. Brown also pointed out that GM announced the production of the new Chevy Blazer model in Mexico while they concurrently pulled the second shift from their plant in Lordstown, Ohio. The bill sounds promising, particularly to auto workers in Ohio, but it is still in proposal form and will not be considered for several months in the Senate.