Ohio Senator Proposes $3,500 Incentive for Consumers to Buy American-Made Autos
If you’ve been keeping on top of the news headlines this summer, you’re likely familiar with the proposed tariffs on imported vehicles, which could cost the auto industry up to $2 million in annual sales. Some manufacturers are predicting higher price tags for their vehicles in the near future. Other automakers are considering dropping certain overseas-manufactured models from their U.S. lineup.
However, public attention has also turned to American-made vehicles. Members of the House and Senate have started brainstorming ways to encourage U.S. automakers to keep manufacturing jobs in the States. They’re also discussing incentives to help promote American consumers for buying homegrown vehicles instead of imported ones.
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Auto manufacturers get a tax break when they ship jobs overseas. That’s just wrong.
Our American Cars, American Jobs act will revoke that tax break, and offer incentives to consumers who buy American-made vehicles.https://t.co/L7MJsdWDVq
— Sherrod Brown (@SenSherrodBrown) August 16, 2018
To this end, Ohio Senator Sherrod Brown and other members of the Senate proposed a bill that would provide buyers with a one-time $3,500 subsidy to help fund their purchase of an American-made vehicle. The legislation stipulates that consumers can apply the amount to a new car purchase or a five-year lease. The bill would also revoke the tax break that automakers would normally make on overseas profits. This would free up to $3 billion to fund the proposed subsidies for U.S. shoppers.
But what exactly qualifies as “American-made“? At least 45 percent of a vehicle’s parts need to be sourced from the U.S. or Canada for it to be eligible for the subsidy.
Another great day meeting with steelworkers and autoworkers to talk about the American Cars, American Jobs Act – a bill that would support the Ohio auto industry and American jobs. Thanks to @steelworkers Local 979 for having us. pic.twitter.com/8webg0hE9R
— Sherrod Brown (@SenSherrodBrown) August 14, 2018
Democratic Ohio Senator Sherrod Brown explained the two-fold purpose of the bill. “Customers who buy cars made in America get a discount and corporations that send jobs overseas lose a special tax break.”
Brown’s endorsement of the bill follows his recent critique of some automakers that are outsourcing vehicle production. It’s no surprise that local unions are on board with the proposed bill. We anticipate more news about this proposed subsidy in the days ahead.
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News Source: The Car Connection