Colo. Rep. Doug Lamborn's solution to auto industry problems.

Discussion in 'Economy' started by oreo, Dec 15, 2008.

  1. oreo
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    oreo Gold Member Supporting Member

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    I thought I would share this letter I received from Colorado congressman Doug Lamborn over the auto industry problems.


    "Thank you for contacting me about the auto industry bailout. I appreciate hearing from you."

    The problems of the Detroit automakers are complex--uncompetitive union contracts, government intrusion in the markets, unrealistic CAFE standards & Washington only appears to only discuss one possible solution: a bailout.

    In the past year, Washington has seen numerous calls for bailouts that are nothing more than quick fixes. They do not improve the structural problems that created the crisis in the first place and I believe this opinion is even worse than doing nothing at all. Not only will the problem come back, but we will have saddled ourselves with a higher national debt that will burden our children and grandchildren for years to come.

    This is why I introduced H.R. 7298, alternative legislation to the proposed auto industry bailout. H.R. 7298 would give a $10,000 federal income tax deduction to consumers who purchase new vehicles with final assembly in the United States. It does not matter what brand name is on the car as long as American workers put it together. This short term stimulus would be made available for the balance of tax year 2008, 2009 & 2010.

    My bill would give a free market voluntary approach to addressing part of the auto industry's problems. When meeting with local car dealers in my district at a business roundtable, they told me that the biggest problems are simply too many cars on the lot, & not enough buyers. H.R. 7298 would solve this problem by encouraging consumers to purchase cars assembled by Americans. Simply put, instead of writing them a check, my bill could help them move inventory.

    Additionally, this bill helps small businesses by giving them more generous tax incentives for buying vehicles assembled in the United States. Under section 179 of the federal tax code, small business expensing limits would double, going from $250,000 to $500,000. This bill would lock in the new tax savings for small businesses by making these new, higher limits permanent and indexed to inflation. Furthermore, this expansion will stimulate acquisition of goods by small businesses, which can help improve the bottom line for automakers, manufacturers of durable goods, & small businesses.

    Our free markets are the greatest engine for prosperity the world has ever known. By applying the time-honored principles of conservatism to strengthing our economy, we have the best chance of working through these problems."

    Sincerely--Doug Lamborn


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