Return of “Cash for Clunkers” in the works?

Posted by: ST on March 29, 2011 at 12:29 pm

Sure as heck sounds like it.  Via the Washington Times’ Kerry Picket (hat tip):

Ready for another cash for clunkers program? It looks like General Motors is attempting to replace it’s own consumer incentives with tax payer money. The car company, bailed out of bankruptcy in 2009 by the American tax payer, appears to be turning the government into an automatic rebate provider.

The Obama administration and their friends on Capitol Hill are floating around a proposal to change the $7500 tax credit for green vehicles. This change can be found not only in President Barack Obama’s budget but also a bill proposed by Senator Debbie Stabenow, Michigan Democrat.

Edmunds.com, a 45 year old trade magazine company that provides automotive information, posted a Department of Energy document listing the department’s funding highlights. The proposed Obama Budget, changes the existing $7,500 electric vehicle tax credit “into a rebate that will be available to all consumers immediately at the point of sale.”

According to Senator Stabenow’s website, her proposed legislation, known as the “Charging America Forward Act” (S.298), “will provide consumers with a rebate worth up to $7500 for plug-in electric vehicles at the time of purchase.”

Essentially, if one were to buy a $41,000 Chevy Volt, the buyer gets a $7,500 coupon, so the final price is $33,500. In the end, the auto dealer assumes the risk of the government giving them this tax credit.

It is pretty convenient that Ms. Stabenow, who represents a state where GM is headquartered is pushing a bill that is also supported by Edison Electric Institute, whose president was loaned a Chevy Volt, Eaton Corp: the sole American producer of car recharge systems, and Battery Electric Vehicle Coalition, a lobbying group for the electric car industry.

In fact, Department of Energy’s David Sandalow told Bloomberg News in February the insta-credit would operate the “same way the 2009 ‘Cash for Clunkers’ program worked.”

The Detroit News reported Vice President Joe Biden said at an Indiana battery assembly plant, “You won’t have to wait,’ it would be like the cash-for-clunkers program.”

Woohoo! Another failed government experiment rears its ugly head again, and in the end, the taxpayer is – as usual – the one left footing the bill. 

Suggested liberal motto: If at first you don’t succeed, fail, fail again.  8-|

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12 Responses to “Return of “Cash for Clunkers” in the works?”

Comments

  1. Lorica says:

    Hmmmm Now maybe I can afford that Tesla Model S I have been wanting!!!!! LOL :) Wonder what color I should order this in?!?!?!? – Lorica

  2. CHOW says:

    Those Tesla’s do look sharp. Guess I am going to have to get me one also.

  3. Neo says:

    The suggest that this time instead of trading in old cars, that we have them trade in old EXTREME politicians.

  4. Carlos says:

    It will be interesting to see where this goes in the House. If it passes, it can only be with the help of supposed TEA party members, and that will show exactly who really is for lower taxes and personal responsibility, and who’s just riding the coattails because it’s convenient.

    BTW, I like the motto for the jackasses, ST, but the only time they succeed is when they are out to screw everyone not in their own elite group. Then they succeed with skyrockets blasting and confetti streaming down and with them telling all of us dumb suckers who voted them in how great they are for screwing us so badly. Not in those exact words, of course, but that’s the real translation…

  5. Old Goat says:

    Seems like the Democratic motto is when at first your programs fail, try try again.

  6. Lori says:

    You really can get money for nothing.

  7. FrankNitti says:

    maybe i’m missing something here….where does the electric car save on carbon emissions? doesn’t it have to be plugged into an outlet, ergo, in my case a coal fired generator.

  8. Glenn Bergen says:

    I thought mass punishment was over when I left basic training. Thank God I don’t drive a GM product; watch, they’ll come up with a program of an involuntary recall of Japanese cars for GM “Cash for Clunkers”. Oh, I love this progressive thinking !

  9. captaingrumpy says:

    Don’t worry,eventually it will role around the world .Everyone likes free money.Actually I think it already is in Europe.

  10. Lorica says:

    Capt…That is a very good point. How long before we start to pay Canadians or Euros to buy the Chevy Volt?? You know in the interest of ending Global Warming and helping Government Motors. – Lorica

  11. Carlos says:

    The way I hear it, the Volt is the new Yugo, but a heck of a lot more expensive.

    And, as pointed out by Frank, ultimately just as polluting.

    And with batteries that will degrade back into nature about the time we start exploring the next galaxy over.