On Thursday during a speech at the Detroit Economic Club, Donald Trump announced his intention to make interest on car loans fully tax-deductible if he’s elected.
“Today, I am announcing that as part of our tax cuts, we will make interest on car loans fully deductible,” he said.
In a classic Trump fashion, he connected with the auto industry professionals in the room, noting that the idea even impressed industry veterans. “I met a lot of them backstage,” Trump recounted.
According to Trump, one longtime auto industry professional told him, “I’ve been in the car industry all my life. I’ve never thought about that.” The former president compared the proposal to a breakthrough like the invention of the paper clip, adding, “Somebody comes up with the paper clip, and everybody says, ‘Why the hell didn’t I think of that?’”
Trump emphasized that making car loan interest fully deductible would dramatically lower the cost of car ownership, especially for working families. “This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families,” he explained.
The idea behind this tax cut is simple but impactful. By making interest payments on car loans deductible, Trump aims to give a financial break to Americans while encouraging more car sales and stimulating the auto industry. Since the auto sector is such a vital part of the economy, particularly in places like Michigan, this policy could be a game-changer for both consumers and manufacturers.
“This is going to revolutionize your industry,” Trump declared to the approval of the audience. “Who likes that idea? Isn’t that great?”
As Trump continues to roll out bold proposals in the final weeks before Election Day, this tax plan stands out as one that could resonate with working-class voters. Last month, Trump vowed that if elected, he would eliminate taxes on overtime wages.
“Today, I’m also announcing that as part of our additional tax cuts, we will end all taxes on overtime,” Trump told his supporters at a campaign rally in Tucson, Ariz. “The people who work overtime are among the hardest working citizens in our country. And for too long, no one in Washington has been looking out for them. They are police officers, nurses, factory workers, construction workers, truck drivers and machine operators.”
“Think of that,” he continued. “That gives people more of an incentive to work. It gives the companies a lot it’s a lot easier to get the people.”
Trump said he went to some economists about the policy and was told, “You’ll get a whole new workforce by doing that.”
“The people who work overtime are among the hardest working citizens in our country, and for too long no one in Washington has been looking out for them,” Trump said. “Those are the people — they really work — they’re police officers, nurses, factory workers, construction workers, truck drivers, and machine operators. It’s time for the working man and woman to finally catch a break, and that’s what we’re doing because this is a good one.”
Back in June, Trump also announced his plan to eliminate taxes on tips.
“For those hotel workers and people that get tips, you’re going to be very happy. Because when I get to office, we are going to not charge taxes on tips,” Trump said.
Kamala Harris went on to copy that proposal in August. Something tells me she wishes she thought about making interest on car loans tax deductible before Trump did.
