Trump Drops A New Tax Promise That Could Be A Turbo Boost For The Auto Industry [WATCH]

During a speech at the Detroit Economic Club on Thursday, former President Donald Trump announced a significant tax proposal aimed at reducing the financial burden on working Americans.

Trump pledged that, if elected, he would make interest on car loans fully tax-deductible as part of a broader set of tax cuts.

“Today, I am announcing that as part of our tax cuts, we will make interest on car loans fully deductible,” Trump told the audience, which included auto industry professionals and local business leaders.

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During his speech, Trump highlighted the importance of this proposal to the auto industry, particularly in Michigan, where car manufacturing is a key economic driver.

He shared an anecdote about speaking to industry veterans backstage, recounting how one long-time professional in the auto sector expressed surprise at the idea. “I’ve been in the car industry all my life. I’ve never thought about that,” Trump quoted the individual as saying.

He compared the proposal to the invention of the paper clip, suggesting it was a simple yet impactful idea that could have a lasting effect on the industry and consumers.

According to Trump, making car loan interest deductible would significantly lower the cost of car ownership, particularly for working families who rely on financing to purchase vehicles. “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 proposal aims to provide financial relief to consumers while boosting car sales, which could, in turn, revitalize the domestic auto industry. “This is going to revolutionize your industry,” Trump said to applause. “Who likes that idea? Isn’t that great?” he asked the crowd, underscoring his focus on economic policies designed to appeal to the working class.

Today, I am also announcing that as part of our TAX CUTS, we will make interest on car loans FULLY DEDUCTIBLE… pic.twitter.com/q5RUbo0lRO

— Donald J. Trump (@realDonaldTrump) October 10, 2024

This proposal comes as Trump continues to roll out a series of tax initiatives as part of his campaign platform.

Last month, during a rally in Tucson, Arizona, Trump also promised to eliminate taxes on overtime wages if elected. “Today, I’m also announcing that as part of our additional tax cuts, we will end all taxes on overtime,” he said at the rally. Trump emphasized that those who work overtime, such as police officers, nurses, and factory workers, are among the hardest-working citizens and deserve tax relief.

“Think of that,” Trump said. “That gives people more of an incentive to work. It gives companies a lot easier time to get the people.” He mentioned consulting with economists who suggested that the policy would encourage more people to join the workforce. “You’ll get a whole new workforce by doing that,” Trump claimed.

NEW POLICY ALERT

President Trump announces a new plan to eliminate all taxes on OVERTIME pay.

“The people who work overtime are among the hardest working citizens in our country — When you pass 40 hours a week, your overtime hours will be tax free.” pic.twitter.com/YQvSOUHr0w

— Trump War Room (@TrumpWarRoom) September 12, 2024

In addition to the proposals for car loan interest and overtime pay, Trump also previously announced plans to eliminate taxes on tips for workers in the service industry.

Speaking to supporters in June, Trump said, “As part of those tax cuts, I’ve announced that I will eliminate taxes on tips for restaurant workers, hospitality workers and anyone else that gets tips — no more taxes on tips!”

President Trump in Florida: “As part of [my] tax cuts, I’ve announced that I will eliminate taxes on tips for restaurant workers, hospitality workers and anyone else that gets tips — no more taxes on tips!” pic.twitter.com/Rhp55ugAuW

— MAGA War Room (@MAGAIncWarRoom) June 14, 2024

In response to Trump’s earlier proposal on tip taxes, Vice President Kamala Harris announced a similar initiative in August. Some observers have speculated that Harris may follow suit with the car loan interest proposal, though nothing has been confirmed.

Trump’s tax policy announcements come as part of his broader push to appeal to working-class voters ahead of the 2024 election.

With Michigan and other key battleground states heavily reliant on the auto industry, these proposals could resonate with voters concerned about affordability and economic stability.

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