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Washington - Congress Races to Save "Cash for Clunkers" |
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Washington - The House raced Friday to pass legislation pouring an additional $2 billion into the popular - but financially strapped - "cash for clunkers" car purchase program.
Reps. Sander Levin, D-Mich., and Betty Sutton, D-Ohio, revealed the floor plan after he and other lawmakers were assured by Transportation Secretary Ray LaHood that the program would continue at least through Friday while the Obama administration looked for more money.
Democrats in both the House and Senate were exploring the possibility of votes as early as Friday to replenish the funding.
White House spokesman Robert Gibbs said Friday that the program is still "up and running," reports CBS News White House correspondent Mark Knoller.
"If you were planning on going to buy a car this weekend, using this program, this program continues to run," Gibbs told reporters.
He would not commit to any timeframe beyond that.
But Gibbs said administration officials and bipartisan leaders of Congress were working Friday morning "to find and develop ways to continue to fund this program."
Sen. Carl Levin, D-Mich., said it wasn't clear when a Senate vote would be held.
Sen. Debbie Stabenow, D-Mich., said about 40,000 new vehicles had been purchased through the program but dealers estimate another 200,000 vehicles have been sold in transactions that have not yet been completed through the program.
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Read Comments (15) — Post Yours »
1
Jul 31, 2009 at 10:48 AM LET IT DIE!! Says:
Let it die!! PLEASE LET IT DIE!!
We dont want to spend MORE money that we dont have!!!
2
Jul 31, 2009 at 12:28 PM CONGRESS IS DRUNK Says:
Apparently, congress has been drinking from the Obama tankard.
WHY DO WE STILL THINK THAT THROWING MORE DEBT ON TOP OF THE ORIGINAL DEBT WILL ERASE THAT DEBT?????
IF THE "POPULAR"(of course welfare/free money for lazy people is popular!!!) "CASH FOR CLUNKERS" IS "FINANCIALLY STRAPPED" (translation: we are giving free money for people to trade in lemons for Ferraris!!!!) THEN ANY SANE PERSON WOULD SAY TO TERMINATE THE PROGRAM!!!!!!!!!!!!!!!
THE UNITED STATES CONGRESS IS COMMITING FINANCIAL TREASON!!!!
3
Jul 31, 2009 at 12:48 PM Anonymous Says:
can you buy a clunker from a dump for $100 and use that as a trade in?
4
Jul 31, 2009 at 02:05 PM PMO Says:
“ Apparently, congress has been drinking from the Obama tankard.
WHY DO WE STILL THINK THAT THROWING MORE DEBT ON TOP OF THE ORIGINAL DEBT WILL ERASE THAT DEBT?????
IF THE "POPULAR"(of course welfare/free money for lazy people is popular!!!) "CASH FOR CLUNKERS" IS "FINANCIALLY STRAPPED" (translation: we are giving free money for people to trade in lemons for Ferraris!!!!) THEN ANY SANE PERSON WOULD SAY TO TERMINATE THE PROGRAM!!!!!!!!!!!!!!!
THE UNITED STATES CONGRESS IS COMMITING FINANCIAL TREASON!!!! ”
I'll ignore your shouting and get to the point.
1. "cash for clunkers" is only good on high-efficiency automobiles.
2. The program puts money directly into the economy. There are no middle-men, the banks are not using it for bonuses. It is going directly to the purchase of durable goods which is what nearly every economist (conservative and liberal) has called for since last year.
When the money goes directly to the purchase of durable goods, the government immediately begins making the money back. The money is used to keep dealerships in business (who pay taxes), it is used to pay employees of the dealerships (who pay taxes), it keeps factories running (which pay taxes) and it keeps people employed at the factories (who pay taxes). Let alone the state taxes that are collected on the sale which will offset the need for federal assistance.
If you actually look at the numbers (instead of shouting) as they have been showing on TV and online since its inception, the program practically pays for itself in the end because it is a direct economic infusion and will generate the tax revenues as the money moves through the economy.
Unlike past programs which sent checks to people, this one puts the money straight into the economy. Sending checks is nice, but if people don't spend the money on durable goods, it does nothing to stimulate the overall economy. Paying down your credit card debts does not help save jobs. This does.
While I was at least partially against every other stimulus program they have tried, this is the one that actually makes SENSE. The numbers add up and the benefits are undeniable.
Might I suggest you learn about economics before you start shouting. It sounds like the kind of thing that the uneducated radio entertainers yell about to start phony controversy.
5
Jul 31, 2009 at 02:05 PM Anonymous Says:
“ can you buy a clunker from a dump for $100 and use that as a trade in? ”
YES
Consumer Bill of Rights
•
Qualified consumers may participate in the CARS Program between July 1, 2009 andNovember 1, 2009 or when authorized funds are no longer available.
•
Qualified consumers will receive a credit of $3,500 or $4,500 for an eligible trade-intoward the purchase of lease of an approved vehicle under CARS Program.
•
Qualified consumers will receive the $3,500 or $4,500 credit at the time the purchasetheir new vehicle.
•
Dealers must provide consumers with any other advertised rebates or discounts inaddition to the credit they receive through the CARS Program.
•
Consumers should expect to conduct their deals at their dealership of choice, not on theInternet.
•
Consumers should expect the dealers to provide their best estimate of the scrap value fortheir eligible trade-in vehicle. Dealers are allowed to deduct $50 from this value for theiradministrative costs.
•
Consumers should expect that all information collected through the CARS Program willbe kept confidential. Social Security numbers are not required for a CARS transaction.
6
Jul 31, 2009 at 01:14 PM Anonymous Says:
its a no brainer if you are in the market for a new cae then stop into junk yard on your way to the dealer for free discount
7
Jul 31, 2009 at 11:29 AM PMO Says:
This is not about spending money. This is about putting money into the economy.
I think we need an economics lesson around here. When we bailed out banks and such we were paying off their debts. There was not much (if any) direct stimulus and that was the fault of Bush's bailout plan followed by Obama's extension of that plan.
This, on the other hand, is direct stimulus straight into the economy that was guaranteed to be used for the purchase of durable goods. When Bush sent out checks to everyone, it did not work out well because most people paid down existing debt, or put the money in the bank. That does not stimulate anything.
This money is not sitting in bank accounts, or paying off existing debt. The government will make this money back easily as it makes its way through the economy. This money is being SPENT and that is exactly how you stimulate the economy.
This may be one of the most successful bi-partisan programs to come out of Congress in at least 5 years.
8
Jul 31, 2009 at 11:26 AM d Says:
Let the government just print more money!...
On a more serious note, if they ran out of a billion dollars, that means that over a quarter of a million people jumped at an opportunity to buy a new vehicle. How many of those did so without the financial backing they need for such a major purchase? Is the government paying people to go into debt once again? Will these people become the subject of the next bailout?
9
Jul 31, 2009 at 11:26 AM d Says:
Let the government just print more money!...
On a more serious note, if they ran out of a billion dollars, that means that over a quarter of a million people jumped at an opportunity to buy a new vehicle. How many of those did so without the financial backing they need for such a major purchase? Is the government paying people to go into debt once again? Will these people become the subject of the next bailout?
10
Jul 31, 2009 at 04:02 PM Anonymous Says:
# 9 u r so right. What is 4,000 when buying a car? U still need so much money to finalize the sale and from where is this money coming if not from more debt. The people that drive clunkers are not exactly the rich people. The problem with our economy is exactly that that people spend more then they have including our government. And guess what our (smart) president does? Instead of people realizing that u can't live on more then u have, he gives more and more to people and creates the impression as if there is still enough money. Its time to stop the stupidity.
11
Jul 31, 2009 at 04:21 PM Anonymous Says:
“ its a no brainer if you are in the market for a new cae then stop into junk yard on your way to the dealer for free discount ”
That's not possible. In order to qualify for this program, you must have proof of insurance and ownership of the trade-in vehicle for at least a year or more.
12
Jul 31, 2009 at 03:59 PM Toras Moshe Emess Says:
I would say that I am "generally" critical of Obama but that would be an gross understatement. That being said, "cash for clunkers" is the ONLY thing in the entire stimulus plan that is even close to being smart. While I absolutely object to socialist-fascist government meddling in the economy (I am an unrepentant laissez-faire capitalist), it HAS stimulated car sales which results in jobs in a desperately ailing industry.
The elephant in the room for those very same socialist-fascist leftists is that this is demonstrative of why ALL their programs ultimately fail: when you give away "free" money, more people than you ever expected will line up for it. The result (every time) is that, sooner or later, you have to dramatically cut back on the program (angering the people who expected it) or continue to spend unending sums of money on it, meaning you have to confiscate more and more wealth from the productive segments of society OR eventually just go bankrupt.
Social security is a perfect case in point. When originally introduced, FICA contributions were 1% of your pay. Today they are 12.4% (that does NOT include the contibution to Medicare) and even with this twelve-plus-fold increase, the Social Security Trust Fund is UNDERFUNDED to the tune of $20 TRILLION!!!
Now these morons want to run healthcare on a national level? G-d help us if they succeed.
(And, yes, modern liberalism IS a form of fascism. Read "Liberal Fascism" by Jonah Goldberg)
13
Aug 01, 2009 at 09:24 PM Elections Have Consequences Says:
“ This is not about spending money. This is about putting money into the economy.
I think we need an economics lesson around here. When we bailed out banks and such we were paying off their debts. There was not much (if any) direct stimulus and that was the fault of Bush's bailout plan followed by Obama's extension of that plan.
This, on the other hand, is direct stimulus straight into the economy that was guaranteed to be used for the purchase of durable goods. When Bush sent out checks to everyone, it did not work out well because most people paid down existing debt, or put the money in the bank. That does not stimulate anything.
This money is not sitting in bank accounts, or paying off existing debt. The government will make this money back easily as it makes its way through the economy. This money is being SPENT and that is exactly how you stimulate the economy.
This may be one of the most successful bi-partisan programs to come out of Congress in at least 5 years. ”
PMO, please don't talk about "bi-partisan" when the bi people are RINOs. If there was a deal with REAL Democrats (vs Socialists) and REAL Republicans (vs RINOs), you could say its "bi-partisan" but till then its a one sided story.
As far as the Bush checks, you chose not to remember that even if people paid down debt this meant they now had more money to spend which they did!!!
14
Aug 02, 2009 at 12:46 PM PMO Says:
“ PMO, please don't talk about "bi-partisan" when the bi people are RINOs. If there was a deal with REAL Democrats (vs Socialists) and REAL Republicans (vs RINOs), you could say its "bi-partisan" but till then its a one sided story.
As far as the Bush checks, you chose not to remember that even if people paid down debt this meant they now had more money to spend which they did!!! ”
So only the extreme RIGHT Republicans and the CENTRISTS Democrats can ever get anything right? That is just foolish on its face alone.
Secondly, the Bush checks did almost nothing as was shown at the time. People did NOT increase their spending, people began saving more. While good for the individual, it is bad for the economy. It was realized (in the Bush years) that this kind of direct stimulus pumped into industry was far more effective. Obama actually (in part) got this idea from the Republicans and it has worked as designed.
Seriously, you need an economics lesson.
15
Aug 02, 2009 at 02:38 PM # 3 and # 5 Says:
“ YES
Consumer Bill of Rights
•
Qualified consumers may participate in the CARS Program between July 1, 2009 andNovember 1, 2009 or when authorized funds are no longer available.
•
Qualified consumers will receive a credit of $3,500 or $4,500 for an eligible trade-intoward the purchase of lease of an approved vehicle under CARS Program.
•
Qualified consumers will receive the $3,500 or $4,500 credit at the time the purchasetheir new vehicle.
•
Dealers must provide consumers with any other advertised rebates or discounts inaddition to the credit they receive through the CARS Program.
•
Consumers should expect to conduct their deals at their dealership of choice, not on theInternet.
•
Consumers should expect the dealers to provide their best estimate of the scrap value fortheir eligible trade-in vehicle. Dealers are allowed to deduct $50 from this value for theiradministrative costs.
•
Consumers should expect that all information collected through the CARS Program willbe kept confidential. Social Security numbers are not required for a CARS transaction. ”
The answer is NO.
You can NOT just go and buy a car from the junkyard for $100 and use as a trade to get $3500.
You need to have the "clunker" registered in your name for at least 12 months.
16
Aug 03, 2009 at 05:31 AM me Says:
I have a 1988 car that does not run with clear title. Give me $250 plus towing cost and I'll drop it off at the dealer of your choice.