How would Sensible Tax Reform affect the purchase of automobiles?
America has a lousy public transportation system in most cities and towns, and between cities. As a result, we are very dependent upon cars for transportation. Other than housing, automobiles are generally the major cost for most families. The industry is also one of the most important manufacturing sectors in the country. For both of these reasons and because of the high price, the purchase of cars receives special tax treatment underSensible Tax Reform. Both new and used cars will be subject to the tax. However, the first $10,000 of the purchase price will be excluded from the FCT tax. This will protect the poor, students and others who are willing to buy low-cost vehicles. It will also exempt most used cars. In addition, 50% of the remaining price will be exempt as well, so that the tax doesnt cause a severe burden on customers and producers.
