President Donald Trump proposed making interest payments on car loans tax deductible for U.S.-made vehicles as part of a broader tax cut plan. (AP/Jose Luis Magana)
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President Donald Trump says he wants to make interest payments on car loans tax deductible, but only for vehicles manufactured in the United States, USA Today reported.
Trump had previously floated the idea at a November rally in North Carolina, according to Reuters. The proposal is part of a broader set of tax cuts he is advocating, including eliminating taxes on tips, overtime pay, and Social Security benefits.
“The next phase of our plan to deliver the greatest economy in history is for this Congress to pass tax cuts for everybody,” Trump said in a formal address.
In late February, the House narrowly advanced the GOP’s legislative agenda, setting the stage for potential extensions of Trump’s 2017 tax cuts alongside new reductions totaling $4.5 trillion over the next decade. That same budget also called for $880 billion in budget cuts to Medicaid and other safety-net programs over the next 10 years.
An unlimited deduction for auto loan interest could cost up to $10 billion annually, according to estimates from the Tax Policy Center.
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