Statement Introducing the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act

8 July 2008

Rep. Ron Paul, M.D.

Madame Speaker, I rise today to introduce the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act, legislation that will help Americans reduce pollution and the amount they pay for gas. My legislation accomplishes these important goals by providing Americans a tax credit of up to $2,000 when they sell or trade in a car and obtain a vehicle that has at least a 20% higher average fuel economy than the sold or traded-in car. The bill also creates a federal tax deduction for any state or local taxes paid on the purchase of the more fuel-efficient automobile and makes interest on loans to purchase the more fuel-efficient automobile tax deductible.

This legislation will help Americans cope with high gas prices by making it easier for them to obtain more fuel-efficient cars. I hope my colleagues would agree that Congress should provide free market incentives to make it easier for Americans to exchange their current cars for cars that create less pollution.

Providing tax deductions and tax credits to make it easier for Americans to purchase fuel-efficient automobiles is a win for American consumers, a win for the environment, and a win for those of us who favor free market solutions to pollution and high gas prices. I urge my colleagues to support this legislation.