Cash for Clunkers to get a test (June 19)
The Cash for Clunkers program, which had appeared headed for the congressional wrecking yard, is on its way to being rescued by the Senate, and now we will be able to see whether it does what it is supposed to.
The idea is one long proposed by clean-air advocates in the San Joaquin Valley, among others. It will pay people $3,500 to $4,500 per unit to get rid of their older, pollution-prone vehicles in favor of more efficient and less-likely-to-pollute cars and trucks.
It also is being advanced as an aid to the auto industry, the sales of which this year are 34 percent lower than those of last year at the same time.
A little-considered fact is that on average, the cars of today are as much as 95 percent less likely to pollute than cars of 40 years ago. Some of that is due to improved automotive technology, some of it is due to better-made fuels, some of it is due to better roads. But getting old cars off the road is still the best bang for the buck when it comes to preventing air pollution.
In close second for anti-pollution effectiveness is keeping older cars in good repair. California’s requirements that vehicles be “smogged” recog- nizes that fact.
The independent car-repair industry believes keeping older vehicles smog free and on the road would be a better use of taxpayer money. Cash for Clunkers may show whether that assertion is true.
The money approved for the program — $1 billion — is seen by most of the legislation’s supporters as another way to help the auto industry, and it no doubt will do that. When you consider the money already handed out to the automakers, though, it will be small potatoes.
If it has a measurable effect on pollution, though, then it will encourage a look at renewing the program.
Similar schemes have served Europeans well.
60% the cars that are currently donated to charity will now be eligible for a $3500 or $4500 voucher under the cash for clunkers program. Since the tax deduction for donating a car is only $500 or what the car sells charities won’t be able to compete with the program and charitable car donation will end. A better idea is to just change the amount a person can deduct for donating their car back to the book value. That way every car is eligible, the government doesn’t have to spend $4 million of our dollars giving away vouchers and trying to administer a program that is way too convoluted!