House to Vote This Week on Weak ‘Cash for Clunkers’ Plan
The House is poised this week to take up the so-called "cash for clunkers" bill, which aims to boost the slumping U.S. auto market by giving out tax credits of $3,500 and up to anyone who trades in a gas-guzzling car for a more efficient model.
Sen. Dianne Feinstein (D-CA) is backing a stronger version of "cash for clunkers". (Photo: Out in Hollywood)The plan was originally touted as environmentally friendly, given that it would theoretically encourage the use of more fuel-efficient vehicles, but it has long since morphed into a thinly disguised gift to the auto industry. The "cash for clunkers" deal that the House will vote on, sponsored by Rep. Betty Sutton (D-OH), offers money to truck drivers who improve their ride's fuel economy by as little as 1 mile per gallon.
The likely passage of Sutton's bill this week could be bad news for a stronger "cash for clunkers" plan that's being promoted by Sen. Dianne Feinstein (D-CA), who displayed welcome candor last month in calling the Sutton plan "the auto industry's version" of "cash for clunkers" and "unacceptable" to American drivers.
Feinstein's proposal would require drivers to achieve a 25 percent fuel-efficiency increase before receiving a tax credit for ditching their clunkers. But Michigan Sen. Debbie Stabenow (D) is pushing for a trade-in tax credit that's very similar to Sutton's -- truck owners would only have to increase their fuel efficiency by 2 miles per gallon to be eligible.
The requirements for car trade-ins aren't much better under the Stabenow and Sutton plans, with a mere 4 mpg increase in fuel economy triggering the $3,500 tax credit.
If Sutton's plan wins House approval this week, Stabenow's Senate counterpart could potentially get a leg up over Feinstein's.
Meanwhile, the larger question of whether the whole idea of "cash for clunkers" makes sense is getting much less attention than it should. The Obama administration continues to support Sutton's effort, despite the fact that it would give drivers new incentive to buy trucks getting as little as 20 mpg and cars getting 22 mpg. Doesn't this risk undercutting the president's plan to force trucks to reach an average of 30 mpg and cars to reach 39 mpg by 2016?
Stay in touch
Sign up for our free newsletter
More from Streetsblog USA
Talking Headways Podcast: Beyond Greenways
This week we’re joined by Bob Searns to talk about his new book and grand ideas for walking trails that circle whole regions and more local routes that make up a new mode of green infrastructure in cities.
Thursday’s Headlines Are Inside Out
Cars and trucks are getting safer for drivers and passengers, but people outside the vehicles are increasingly in danger.
New Federal Committee Will Push for Transportation Equity By Helping DOT Reckon With Its Past
“No one alive today is necessarily responsible for the origins of the [transportation] inequities that we inherited. But everybody who was alive today and in a position of responsibility, is accountable for what we do about it. That's why we're here.”
Report: America’s Historic Bike Boom is Flatlining
"This growth won't continue forever without being facilitated by more infrastructure investment, [and particularly] safety infrastructure."
SF Advocates Explore How Enhancing Disability Access on Transit Helps for Everyone
BART was the first accessible transit system in the country. Advocates want Bay Area transit agencies to do better at keeping buses and trains accessible for all.
