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$787 Billion Stimulus Package Includes Big Benefit For Car Buyers

Apr 23, 2009

The $787 Billion American Recovery and Reinvestment Act was signed into law by President Barack Obama on February 17, 2009. While there is ongoing and lively debate about what was included, what was removed, what SHOULD have been included and what SHOULD have been removed, the fact is that the stimulus bill contains a very key benefit for car buyers.The bill includes a combination of spending initiatives and middle class tax cuts. Among the tax cuts is a provision that allows consumers to write off the sales and excise taxes related to the purchase of a new car or truck from now until December 31, 2009. In a State like New Jersey, with a fairly high sales tax rate of 7%, this can result in a tremendous savings.NJ CAR worked closely with New Jersey Congressman Bill Pascrell, who sponsored the provision, to ensure the final legislation included some benefits for potential car buyers and the retail automotive industry. NJ CAR is very grateful to Congressman Pascrell for his leadership on this issue.Dealers can use this as a major point with any prospective customer as an excellent example of why now is the best time to buy a vehicle.Congress and the White House, by including a provision such as this, recognize that stabilizing the marketplace and setting the stage for future growth takes a bottom-up strategy targeting consumers directly. This approach compliments the top-down strategy of helping the automotive, banking, and other industries regain their solvency as well.