Feinstein and Collins: Handouts for Hummers

JUNE 11, 2009

Handouts for Hummers
We're astonished how quickly lobbyists fouled up a good idea.

By DIANNE FEINSTEIN and SUSAN COLLINS
WSJ

It's amazing how quickly a good idea can go bad in Washington. In January, we joined with Sen. Charles Schumer to introduce a bill that would allow Americans to trade in gas-guzzling cars in exchange for vouchers worth up to $4,500 toward the purchase of vehicles with greatly improved fuel economy. This legislation was modeled after programs in California and Texas that improved fuel efficiency, reduced pollution, and stimulated auto sales. Our "Cash for Clunkers" proposal was a win-win for the environment and the economy. Then Detroit auto industry lobbyists got involved. Soon a rival bill emerged in the House, tailored perfectly to the auto industry's specifications.

The House bill was written so quickly that one of its main components -- a provision that would have excluded any vehicle manufactured overseas -- had to be removed because it violated trade laws. But the worst item on the auto industry's wish list is still at the heart of the bill -- a provision that undermines fuel-efficiency standards. On Tuesday, the House approved this legislation, which would subsidize the purchase of a new Hummer H3T (16 mpg) or a new Dodge Ram 1500 4x4 truck (15 mpg), but not a two-year-old Ford Focus (27 mpg) or used Chevy Colorado (20 mpg). A companion bill is pending in the Senate.

On Monday, we introduced a new version of our bill, which keeps reasonable fuel-efficiency standards in place. It would result in at least 32% more oil savings than the auto-industry bill and significantly reduce greenhouse gas emissions. Each participating driver would save up to 176 gallons of gas a year, according to the American Council for an Energy Efficient Economy. In addition, our bill would permit the purchase of used vehicles, helping lower-income Americans to participate.

(snip)

The truth is, the House bill and its Senate counterpart are another big bailout. These bills are expertly designed to provide Detroit one last windfall in selling off gas guzzlers currently sitting on dealer lots because they're not a smart buy. Supporters of the auto industry approach say that our bill's higher fuel-efficiency requirements give foreign automakers an advantage. But there are plenty of fuel-efficient vehicles made by American companies that would qualify, including the Ford Escape, the Dodge Caravan, the Jeep Compass, the GMC Yukon Hybrid, the Chevrolet Cobalt, the Chrysler Sebring, the Saturn Aura Hybrid, the Pontiac Vibe, and many other models. Trucks with above-average fuel economy for their class would also qualify. They include the Chevy Silverado, the two-wheel-drive Ford F-150, and the Toyota Tacoma (built in California). Drivers could also choose from an array of Toyotas and Hondas built by American workers in U.S. factories -- such as the Toyota Camry (built in Kentucky) and the Honda Accord (built in Ohio).

(snip)

Mrs. Feinstein is a Democratic senator from California. Ms. Collins is a Republican senator from Maine.


http://online.wsj.com/article/SB124467696781404127.html

Printed in The Wall Street Journal, page A13

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I did not know that we had an "auto industry."

and a few people here actually argued with me. :crazy:

This is so disappointing. My kids could use this legislation right now.

The legislation is crap. The idea started out as a good one but got politicized, as usual.

I have heard from some of my more radical friends that that is the case - but what is the truth?

$ 70K tax write off when they initailly purchased the vehicle.
In 2002, I purchased a used Toyota Paseo - HWY mileage was like 40 and city mileage 36. Got no tax breaks to show for it.

The people two doors over bought a new Cadillac Escalade (Or whatever) and got a significant break on their taxes.