CAMPAIGNS
Trump pitches tax write-off for auto loans in Detroit speech
Latest proposal comes as former president makes play for votes in Michigan, where Harris’ lead has dwindled


Former President Donald Trump speaks at the Detroit Economic Club on Thursday. (Bill Pugliano/Getty Images)

By David Lerman
Posted October 10, 2024 at 5:38pm

Former President Donald Trump proposed making interest on car loans tax-deductible Thursday in the latest of a series of tax cuts he has promised on the campaign trail.

The GOP presidential nominee used a speech to the Detroit Economic Club to unveil his vision of a car industry “renaissance” built partly through higher protective tariffs on imports. But in seeking to gain advantage in a tight presidential contest against Vice President Kamala Harris, Trump has offered up a variety of tax breaks on tips, Social Security benefits and more, and he seized on car loans for his appearance in the battleground state of Michigan.

“Today I am announcing that, as part of our tax cuts, we will make interest on car loans fully deductible,” Trump said in a rambling two-hour speech. … “That’s going to revolutionize your industry,” he said. “This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families.”

{snip}

Interest deductions for car loans as well as credit card and other consumer debt were wiped out as part of the 1986 tax overhaul during the Reagan administration. Trump offered no price tag for the proposal, which would require action by Congress. … The last time lawmakers tried something similar was on a temporary tax break, authored by former Sen. Barbara A. Mikulski, D-Md., that initially passed the Senate as part of the 2009 Great Recession-era stimulus package. … Mikulski’s amendment would have allowed car buyers to write off interest expenses on loans worth up to $49,500 for new cars purchased from late 2008 through the following year. The benefit was limited to households earning up to $250,000 — and $125,000 for single tax-filers — and scored as an $8.5 billion cost at the time. It was dropped in conference negotiations with the House.

{snip}