Michael Spohn – 11/23/08

This page was last updated on November 23, 2008.

Use bailout money for sales tax rebate; Michael Spohn; Beaver County Times; November 23, 2008.

Below is a detailed critique of the subject letter.

“I keep reading up on the automakers’ bailout, and here is a better idea.”

[RWC] No, it isn’t.

“Instead of giving the automakers $25-50 billion to help bail them out, let’s have the government reimburse Americans $1,500 in sales tax paid for every citizen who purchases a new vehicle during a short period of time, say two or three months.

“Based on the reimbursement, if every penny of $25 billion was used, it would mean that more than 16 million new cars would be purchased.”

[RWC] Would a $1,500 rebate entice you to spend $25,000 or more you hadn’t planned on spending?

For context, 16 million is about one million less than the total of cars (eight million) and light trucks (nine million) sold in 2007.

“By purchasing new vehicles, the economy grows, the states collect additional sales tax and the American public benefits while the automakers help get themselves out of debt through production.”

[RWC] What about the purchases of other goods and services that would not be made because I decided to buy a car instead?

“I am sure that I missing some bad part of the plan that I have thought about, but I really can’t see what that might be.”

[RWC] Why didn’t someone at the Times edit this sentence to make it readable?