The cash for clunkers program was controversial when it was first announced. The program offers Americans $4,500 to trade in their old cars with poor fuel economy and high emission output for a newer vehicle that gets better fuel economy. At the same time, the program was intended to help the ailing automakers turn some profit.
Reuters reports that the Obama administration has announced that the $1 billion allotted to the program is now gone and that the program is in danger of being discontinued if more funds can’t be found. Car dealers around the nation began offering the government rebates in early July and by the end of July, more than 4,000 cars had been purchased using the rebates.
The program now has about 250,000 rebates waiting to be processed and additional funds are needed. The Obama administration is trying to get Congress to approve additional funds for the program before they leave in August. The program ran out of funds where sales unexpectedly spiked this week after the transactions began being logged and approved.
Reuters reports that officials had originally intended to simply suspend the program late Thursday or early Friday when funding ran out. Now officials are planning to keep the program in place while more funds for the rebates are approved. The rub is that in a short period it will be difficult to find funding for the program.
Estimations place the number of dealers able to participate in the program across the country at 16,000. For the funds to be depleted, each of those dealers would need to have sold more than 12 cars according to Reuters.
Congress had already said in early July that if the program proved popular and consumers were buying fuel-efficient vehicles that the program would possibly be extended.
quote: I would have much rather seen this $1 billion go towards not cutting NASA's budget.
quote: Even if I go down to "bob's" and pick up that clunker for $1K and trade it in to net me $3500, then it helps me, the dealer, and it helps assure that piece does not get back to the wholesale market to stick around for another 5 years.
quote: This program is mostly helping people who want a new car and can already afford one.
quote: Ex 1 - I pay for the local school corporation with my county taxes but I don't have any kids nor will I ever have kids, so they don't benefit me or my family (yes I did benefit from them at one point but my 12 years of school don't equal out to the 60+ years of taxes I pay).
quote: Ex 2 - Millions of my state taxes are used to repave roads 200 hundred miles from me that I will never use. Again, I pay but don't benefit.
quote: If schools weren't free because of my tax dollars but still mandatory, that would take the burden of cost off of me. That doesn't mean the whole country would become dumber.
quote: And if road A didn't exist, goods would still get to their destination by the use of road B and I would still be able to purchase those goods regardless. Maybe the "paving" of old roads was a bad example, but take for example new roads that our tax dollars are spent on that I would never use. Maybe these roads will eleviate congestion in one area but wouldn't stop goods from reaching their destination.
quote: Ex 1 - I pay for the local school corporation with my county taxes but I don't have any kids nor will I ever have kids, so they don't benefit me or my family (yes I did benefit from them at one point but my 12 years of school don't equal out to the 60+ years of taxes I pay).Ex 2 - Millions of my state taxes are used to repave roads 200 hundred miles from me that I will never use. Again, I pay but don't benefit.
quote: Less accidents=lower mortality/disability=less welfare money in the long run. Plus, passengers of a safer car a less likely to suffer severe injuries in case of accident. Again, that means less welfare money in the long run.
quote: We are subsidizing ourselves with our money.
quote: I can barely afford my grocery getter now i gotta buy my neighbors a new car too?
quote: But that takes a very long time. A lot of carbon has been 'sequestered' over the millenia in the form of oil, natural gas, and coal.
quote: Nature does make more CO2, but it was in equal balance with nature absorbing it back.
quote: You are also forgetting the spark in sales for the automaker, and reducing carbon emissions.
quote: and a boob job for their wife
quote: And these clowns want to be in charge of our health care?
quote: Every law that gets passed by congress ends up benefiting someone, and almost always at the expense of others.
quote: Now, you could argue that giving people new cars is providing for the general welfare, but I doubt the founders would agree with you.
quote: BTW, your list is rather silly ( sure, those are powers given to the government, but (a) it is not comprehensive, and (b) many of those items can be interpreted in such a way as to justify most if not all of the actions of the current gov't).
quote: Now, you could argue that giving people new cars is providing for the general welfare, but I doubt the founders would agree with you. I think they meant providing safe food, safe medicine, licensing doctors, etc.
quote: Now, you could argue that giving people new cars is providing for the general welfare, but I doubt the founders would agree with you. I think they meant ensuring the safety of the food suppy, medicine, and setting standards for the licensing of doctors, etc.
quote: The constitution doesn't specifically give the right for the government to do an income tax... are you arguing that all income tax should be abolished b/c the constitution doesn't explicitly state that it should exist?
quote: The income tax shouldn’t exist
quote: You say that it shouldn't exist, yet you propose an alternate income tax.
quote: A sales tax is the exact same thing as an income tax. Does it really make a difference if the person who provides the service pays the tax, vs the person who purchases the service?
quote: Well, now you're adding exemptions. I could easily add exemptions to an income tax to have the same effect.
quote: You have double taxation from capital gains as well when using a sales tax. When you buy your shares (or whatever else you'll get capital gains from), and when you purchase items with the money later on.
quote: Ideally, there would be no cap gains tax with a flat consumption tax.
quote: I agree with that. However, the income tax ideally would be structured in the same way as to avoid double taxation.
quote: With a sales tax I can take home all of my money, put the money I would otherwise be paying in income tax and invest it
quote: In any case, such arguments are pretty much pointless, since it has been established that such government actions are within its power.
quote: Has the Constitution been amended to permit Congress to manage the economy?
quote: It doesn't need to be amended. It is very clear in the constitution must protect one's right to property. Since money is property (and virtually all other property has monetary value), it wouldn't be a stretch to assume that the government is responsible for managing the economy.
quote: Well now... that's just your interpretation of it :)
quote: I could easily interpret "no person shall be deprived of life, liberty or property" as justification for the government to manage the economy. How could the government prevent someone from depriving you of your money if the government cannot manage the value of money?