More tax breaks coming from Trump's proposed tax break on car loan interest

[RicoSuave102954]

• Former President Donald Trump proposed a new tax deduction on auto-loan interest last week during a speech in Detroit.
• The tax break would likely be structured as an itemized deduction, according to tax and policy experts.

Former President Donald Trump proposed a new tax deduction last week for car owners who pay interest on an auto loan, one of many tax breaks he has floated on the presidential campaign trail in recent months.

Trump's proposed tax break would make interest on car loans fully tax deductible. It's an idea that he compared to the mortgage interest deduction, which allows some homeowners to reduce their taxable income by writing off a portion of their mortgage interest payments each year.

So, which American households would benefit, and how large would the benefit be?

More than 100 million Americans had auto loans in the second quarter of 2024, worth $1.63 trillion, according to the Federal Reserve Bank of New York. The average person had a car loan of roughly $24,000 in 2023, according to Experian.

Someone buying a new vehicle this year would pay, on average, about $1,332 a year in interest charges, according to AAA.

During a speech in Detroit on Thursday, Trump compared the policy proposal to an existing federal tax deduction on home mortgage interest.

That tax break lets homeowners deduct annual mortgage interest payments from their taxable income, thereby reducing their tax bill. It's only available to taxpayers who itemize deductions on their federal tax returns.

MSN

 

[theiacowtipper]

So basically it would benefit no one.

 

[Whiskeydeltadeltatango]

So basically it would benefit no one.

What?

 

[RicoSuave102954]

So basically it would benefit no one.

LOL - If it would cost 5 billion a year in lost revenue someone is benefiting.

Someone like you who purchases $1000 beaters at the Buy Here Pay Here lot probably won't benefit much.

However, Rico pays Mucho dinero for his vehicles and the family fleet.

 

[IACub]

I dunno... this sounds an awful lot like...

SOCIALISM!!!

 

[HawkMachine]

Very few people itemize anymore.

The ones that do most likely don’t have car loans.

 

[IACub]

Very few people itemize anymore.

The ones that do most likely don’t have car loans.

But... tax cut...

 

[NDallasRuss]

Making tip income non-taxable...making OT income non-taxable...making car loan interest tax deductible...

I haven't heard him mention how he would replace that lost tax revenue, or how how he would cut spending to account for the lost income. Or will we just keep deficit spending and running up a larger and larger debt, which no candidate seems concerned enough about to mention any more?

Wasn't a defining characteristic of the "R"s that they're fiscally conservative? Why did that have to stop being the case?

 

[TonyTheTiger.1865]

He will tax sex change operations to make sure the left pays for the delta.

 

[Whiskeydeltadeltatango]

Making tip income non-taxable...making OT income non-taxable...making car loan interest tax deductible...

I haven't heard him mention how he would replace that lost tax revenue, or how how he would cut spending to account for the lost income. Or will we just keep deficit spending and running up a larger and larger debt, which no candidate seems concerned enough about to mention any more?

Wasn't a defining characteristic of the "R"s that they're fiscally conservative? Why did that have to stop being the case?

1 proposal is Elon is going to cut the shit out of the government bloat.

 

[NDallasRuss]

1 proposal is Elon is going to cut the shit out of the government bloat.

I'm not sure Elon is qualified to make that kind of assessment. I'm also concerned that the areas cut would disproportionately benefit him and his businesses (and those of his friends), and disproportionately harm anyone he doesn't like or agree with.

The internet says that Twitter is worth 80% less than when Musk bought it. That's the impact of his changes. I don't think I want him doing that to our government: seems like it would put us in a precarious position.