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This bill would put every charity car donation program in the nation out of business since the amount of the voucher would be much greater than the tax deduction. The solution is to simply allow the charity to issue the voucher in lieu of the tax deduction. The charity would then junk the car in accordance with the bill. This way, everyone wins, the car dealer, car maker, car buyer and the charity.

Thank you for your suggestion. I'm not sure of all the ramifications of that suggestion but a gift the charity is not equal to 100% cash and the benefit is not realized until tax time. The Cash for Clunkers voucher is immediate cash to the dealer.

If someone is in the 30% tax bracket, a $4,500 receipt issued from a charity, would not translate into $4,500 of free cash. Gifts to charity are out of pocket expenses still to consumers. So, the consumer would save only $1,500 off their taxes.

I'm not sure if this would put charity car donation programs out of business, but I do understand your concern.

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