CQ TODAY MIDDAY UPDATE
April 29, 2009 – 1:41 p.m.
House Democrats Near Compromise on ‘Cash for Clunkers’
House Democrats seeking to spur consumer demand for cars appear to be closing in on a compromise “cash for clunkers” proposal, but it is unclear whether the deal will satisfy environmental groups.
Rep. Steve Israel , D-N.Y., the sponsor of one bill to reward buyers of new, more fuel-efficient autos, said Wednesday that an emerging compromise would create vouchers that could be used to buy vehicles whose fuel efficiency is “at or near existing CAFE standards.” Israel said he would support that deal, which has not yet been announced, but would not be happy about it.
“It’s a disappointing compromise,” he said, noting that his bill sets more stringent fuel-efficiency requirements. “It isn’t exactly visionary.”
Other details remained unclear.
Lawmakers have been working with Democratic leadership staff and the White House to draft legislation that would offer consumers vouchers to help them buy a new, more fuel-efficient vehicle if they trade in an older or less fuel-efficient vehicle.
The concept won the backing of President Obama earlier this month as a way to aid struggling domestic automakers, but has been bogged down amid disputes over the cost, fuel-efficiency requirements and trade implications of the legislation.
In the House, a proposal from Betty Sutton , D-Ohio, is backed by the domestic auto industry. Israel’s bill is favored by environmental groups, in part because it would require new cars to exceed Transportation Department fuel economy standards by at least 25 percent in order to qualify for the vouchers.
Under Sutton’s bill, the new car would have to get at least 27 miles per gallon on the highway, and vouchers would range from $3,000 to $5,000 depending on the purchased car’s gas mileage.
Supporters have proposed tapping unused funds from this year’s economic stimulus law to pay for the auto legislation, although it remains uncertain how much the plan would cost.
Comments
Extremely important question: under the compromise bill, what will the criterion for getting a voucher? The age of the vehicle (the house bill gives vouchers for vehicles older than 8 years)? Or the "original" MPG of the vehicle when produced (as in the senate bill)? If MPG is used, will we use the "original" figures or the "recalculated" (post-2008) figures (which are closer to reality). My 17 year old Geo Prizm, which got a decent MPG when manufactured (but not so much now), may or may not qualify--but I'll certainly continue to put off the purchase of a much needed car until I know for sure. In the meantime, I'll just pay to weld the muffler back on (again).
Just get it done!!!!
Wow! I have a 12 year old Geo Prizm. I haven't had to weld the muffler back on --- yet, but I have had to Gorilla Glue both side mirrors back onto the doors. Cool!
it woould be awsome if this was retro active seeing as how i just bought a Cobalt that gets 32 mpg and the mayment are killing me.
Michael, it's apparent you haven't been paying attention to the economic news. One reason our economy is in the toilet is because people are buying things they can't afford. Don't ask for a handout now!
First of all, this is a terrible idea. Just another example of an overly obtrusive governement trying to legislate lifestyle. American's don't need more fuel efficient cars. We love our big, powerful luxury cars and trucks. What we do need is the ability to squish the stupidity in the environmental wacko office so we can drill on our own land, for our own oil, and also build new refineries. Second, Michael.edge, if you are having trouble making the payments on your new Cobalt, you should not have purchased it. Why should my tax dollars help bail you out of your overspending habits. Also, stupid move to buy a car from a bankrupt, government owned automaker. Just three words for you: Honda, Toyota and Nissan. No unions and much better quality products.
You can bet it won't be retroactive... I will keep my 1997 camry until the wheels fall off or until the government forceably takes it from my house!
Cash for Clunkers is a good idea but more needs to be done to force automakers to build more fuel efficient vehicles. Why are automakers still making trucks and SUVs that only give you 13-18 MPG? How about imposing a heavier tax for people that buy these vehicles (unless you have a legitimate reason to own one (i.e. 5 children, contractors).
So my 1993 Grand Prix LE still gets comparable gas mileage (current rating is 20mpg which is what I get, so pretty accurate), but according to the Ford site, it's too fuel efficient to qualify for the program. They should make it qualify if the car you want to purchase gets 10mpg or more than your current car. That would be sweet.
Congress needs to get a clue - Our unfair trade laws caused this issue - NAFTA and Chinese trade has ruined our manufacturing employment base - so repeal NAFTA and raise import tariffs until these other countries stop slave labor, factory pollution, corruption, etc. - I would support a voucher to buy "Made in the USA" products to put our country back to work
buy american. why support foreign car dealers/makers when we need the $$$?
Gman, I agree that something people driving big SUV's and trucks don't necessarily use them for their purpose. On the other hand, do you really want to live where you are forced or told what you can and can't drive? This would be micro-management at it's best. America has long had a fascination with expression of individuality and free will. Having a choice in what they drive is a good example. The automakers aren't telling us what to buy and drive. They make what we want. If we don't buy it. They stop making it. Why should I have to prove that I deserve to own a certain vehicle, other than being able to pay for it. If I can't pay for it, I shouldn't buy it, or it should be repossesed. Bailouts should only be for those who really need it because of unfortunate circumstances, not for those who got caught living beyond their means. Having my lifestyle dictated to me is not something to get excited about. This is not the FREE America that I grew up with.
The thing about it is, the way I see it, 90 percent of the people driving these old clunkers are probably like me and can't afford a new car payment, even if you knock off a few thousand. I think a better idea would be to just buy the clunkers and let people do what they want with the money. Many might buy another clunker, but that would sweep some of the worst offenders out of the bottom of the market. There is the problem of this plan doing less for automakers. Oh, Michael, isn't "bankrupt" and "government-owned" a contradiction in terms? Looks to me like any time our government runs short, they just print any number of trillions of new dollars they want and write it on the books in red for our grandkids to worry about.
Gman, If I live in a free country, why should I want to allow someone to dictate what I can and can't drive? I don't want to have to justify why I want a certain vehicle. If I have the money to pay for it, I should be able to buy it.
On the surface, this sounds like a great idea. It encourages people to stimulate the economy and buy cars, that saves jobs, and creates work for people. Then again, where is all this money going to come from? That's $3-5K for each and every person that wants to participate. Oh and, "The Government Printing Press" is not an acceptable answer.
This sounds like a great idea on the surface. $3-5K per car. Wow, where is this money going to come from? Oh and, "The Government Printing Press" is not an acceptable answer. They mention the economic stimulus plan, isn't that money already meant for another purpose. "We can't promise the Economic Stimulus Plan any longer. We are using that money for another scheme that will more effectively allow us to control the populous."
This is great in the surface, but where is the money going to come from? Oh and, "The Government Printing Press" is not an acceptable answer. $3-5K for each car is a lot of money. The economic stimulus plan mentioned is already allocated for another use.
no one is forcing anyone to do anything. Simply ... if you want to trade in your car for a more fuel efficient vehicle ... then you can ... and we want you to ... soo ... here is an incentive ...
Following the German lead I guess. The Germans have been doing this for about a year now. The person trades in hisclunker as down payment on a new car. They don't have the MPG rule. they are simply tryingto get old cars off the road.
Steve, it starts as an incentive to get people to voluntarily submit to the idea. President Obama has been heard explaining details for a plan that would place a deadline on auto makers to meet a fuel efficiency criteria for all cars, and you have to justify why you need to own a less fuel efficient vehicle. (truck or SUV for work purpose) It all starts innocent enough, then they swoop in for the kill. The restrictions for firearms and ammunition are already on the way for common rifles and pistols with HR 45 being considered in congress as we speak. What's next?
Sorry, but I sick of politicians talking about energy efficient cars, thinking 32 Mpg is great, please. I was driving a turbo diesal in Belgium that got 55 Mpg... I tried to buy a Volvo Diesal and have it shipped back to the states and it wasn't offered in U.S. Specs. Why? What's the difference... Europe is suppose to be more "green" than the US and their cars don't meet American Specs? I think it all goes back to the Oil Companies not wanting more fuel efficient cars so they car continue to sell gasoline. Diesal is cheaper to refine, but is more expensive because of taxes added on by our government. Your representatives are selling you a joke. By the way I'm sorry you bought a Cobalt, I rented one, two, I mean three in a two week period and it was a real piece of junk. I wouldn't give any Auto Industry bail out money that have sold trash to the American people for years, they are in this situation because they make disposable cars.
As California goes bankrupt, Obama wants to spend all this money on buying everyone new cars? The foreign car companies make the most fuel efficient vehicles, for the most part, meaning all this money will go outside the US, not at all helping the struggling domestic companies.
point of disclosure - just traded in gas guzzling '96 for a sipping '09 - and i will get that state sales tax back in federal return. so all i can say is YAAAAHHHH!!! I will be rewarded for doing what everyone else should be doing anyway. My little Toyota will get 40 mpg and it was made in the United States!! My car purchase was overdue anyway, and my wife and I were going with fuel efficiency anyway because that is what true patriotic Americans should be doing - saving fuel to reduce the pressure on our troops. When I am finished typing this, I will be making a phone call to that window company that says my new windows will be free with rebates and tax credits because they save me money on my fuel bill. Well duh... Targeted tax credits in the '90s helped create the internet I am typing on now. Targeted tax credits now will help get the American economy going again the way it should be. And this tax credit will hire Americans to build my car and windows. The un-targeted tax "refund" went to buy consumer goods made by slaves in other countries. Do the good and patriotic thing and use these credits the way they are intended.
THIS IS OBAMA'S VERSION OF MAKING AMERICA BETTER, BUT MAKING LIFE HARDER ON THE LESS FORTUNATE. OH LET'S GUVE AWAY MONEY FOR BETTER FUEL ECONOMIC CARS BUT WILL STILL ARE IN DEBT LIKE UP $7 BILLION TO CHINA. WOW THINK THAT WHEN BUSH, JR PASSED THAT DANG NO CHILD LEFT BEHIND CRAP THAT SOMEONE WOULD'VE CAUGHT ON BY NOW. LOOKS LIKE BUSH LEFT EVERYONE BEHIND AND NOW OBAMA AND HIS STAFF ARE EVIDENCE OF THE NO CHILD LEFT BEHIND CRAP.
Hello: Does anyone know how to file for the voucher? The article just talks about the who/what, but provides no direction. If you do know. email me at this address. wbeausol@hotmail.com
How about this. Why dont you all stop complaining about your stupid opinions of our government. If you really want to complain try spending a year over seas away from your family. Thats a big price to pay for what, so yall can sit behind a computer and cry about gas prices and money. Be thinkful that you have a car and a family to come home to.
1996 Nissan 240...and I will be driving it into the ground it still runs good ...Im with ya Sandy....
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