President Trump Proposes Tax Deductions For Buying American Made Cars

President Trump floated out in front of reporters on March 28 an interesting idea he’s apparently considering: giving anyone who buys an American made car a tax deduction. While people who have had the cash to pop out for an expensive EV have been given a nice tax credit, this is the first time we’re aware of such an idea being thrown around in the White House,

According to comments made by the President of the United States, he had just previously spoken with Senator John Thune as well as US House of Representatives Speaker Mike Johnson about the idea, which he made sure to let reporters know was his.

President Trump says the tax deduction will be for if you take out a loan to buy a car manufactured in the United States. What you get to deduct is the interest paid each month for the tax year.

In other words, Dave Ramsey won’t like this plan. Sorry if you only buy cars with cash.

We’re not clear if this applies only to loans on new cars or if used vehicles would also be included.

Trump seems to think this plan will be a huge success, and he might be right. He commented that people “have never had a deduction” and so they’ll flock to it. Maybe some people haven’t, but we’re interested to see how this plan is rolled out, if in fact it does become reality, and how it will impact car sales in the second largest market in the world.

What we do like is how this plan seems to be catered for the middle class. Too often, people in the middle class make too much to qualify for a lot of programs from the government, including get much of a tax return, but not enough to comfortably pay their income taxes. Any relief would probably be much appreciated by most.

Obviously, the idea here is to incentivize car shoppers to buy vehicles made using American labor, which in turn would spur automakers to locate manufacturing here, stimulating the economy. Considering how many factory jobs have been shipped elsewhere over the last three-plus decades, that relief could also be very welcome.