And This Guy's a Republican!

Anyone ever hear of Mike Rogers? He's a congressman from Alabama.

If you've never heard of him, you're not alone; I only heard of him ten minutes ago myself! Congressman Rogers was just interviewed on Fox News regarding his latest brainstorm, a bill he's proposed identified as the CAR Act of 2009.

God help us...

FOLKS... if you're presently shopping for a new car... STOP! At least that's the unintended though only logical response a consumer would decide upon if he were to believe Rogers has a reasonable expectation of getting his bill through Congress and signed into law by the president.

What exactly does the Congressman propose? Well... same as usual... spend money - borrowed money. The preamble:

"To amend the Internal Revenue Code of 1986 to provide tax incentives to consumers and lenders for the purchase of a passenger vehicle during 2009."

In plain English, what Rogers and ten of his congressional colleagues propose is to create a new time limited tax deduction with a sliding scale along the following lines:

The bill breaks down into three 90-day periods of Federal tax deductions after enactment of the bill. During the first 90 days, consumers would receive a $7,500 Federal tax deduction, the second 90 days a $5,000 deduction and the third 90 days a $2,500 deduction. It would also make 100 percent tax deductible interest and state and local taxes paid on the purchase in 2009. Lenders would also get a break with a 50 percent deductibility of earnings on all new consumer car loans during this nine month period.

(*SIGH*)

Ahh... where does one start? How about here:

1) So... as written there's no retroactivity in the bill. Therefore, assuming you're presently in the market for a new vehicle and you believe this bill may pass... GET OUT OF THE MARKET NOW!!! I mean, it's a no-brainer, right? If there's a choice between no $7,500 tax deduction on a vehicle purchased today, tomorrow, or anytime before the Rogers bill becomes law and a $7,500 tax deduction should you wait to purchase till the bill is passed... well... that's 7,500 reasons to wait - right...???

2) Why the sliding scale? If the idea is immediate stimulus... why not a simple 90-day eligibility window for the $7,500 tax deduction - period? And if the congressman and his adherents truly believe a longer stimulus period is warranted, why not just keep the tax deduction pegged at $7,500 for the entire envisioned 270 days...???

3) If you read bill you'll note that this cash bonanza from Washington is directed not simply at the purchase of American vehicles manufactured by the Big Three; no, nor even limited to vehicles entirely or mainly produced in American factories by American workers with the profits flowing back to Toyota, Honda, and other foreign owned auto companies. Nope! The proposal on the table applies to foreign auto companies producing their products abroad and shipping them here by foreign flagged cargo ships! Apparently Rogers and his colleagues feel that the auto workers and foreign car company owners of Japan, Germany, South Korea, and indeed all foreigner are as much "constituents" to be financially supported by Washington tax policy as any American worker, stockholder, or citizen stakeholder.

4) Oh, yeah... and by the way... as previously touched upon... WASHINGTON IS SIMPLY BORROWING AND PRINTING MONEY IN ORDER TO OFFER SUCH LARGESS!!!

(*SIGH*)

Folks... I don't know what the solution is. This guy Rogers is a REPUBLICAN!!!

I expect this sort of ill-advised, counter-productive, full of unintended consequences legislative proposal to come out of the Democratic caucus. And, yeah, I'm well aware that George W. Bush has dragged the GOP into one socialistic boondoggle after another, but for God's sake... doesn't anyone in Washington have any clue...???

Apparently not... (*SIGH*)