Volkswagen Tiguan[/caption] FINALLY, our elected government officials have made a smart decision to remove the one-sided benefit of deducting interest paid on car loans. The original proposal missed 40% of the car buyers, giving the interest tax deduction for car purchases to only NEW CAR BUYERS.  SO– the one redeeming effort is the deduction of SALES TAX paid in 2009 on new cars. They have not indicated if USED cars will be included, which I doubt, as the entire proposal was geared to push NEW factory production. However, the argument can be made that by offering sales tax deduction credit to USED CARS, the demand for trade-ins would spur sales to those not able to buy new cars, and which would in turn encourage NEW CAR BUYERS to upgrade, trading in their old rides. For residents of states without personal state income tax or no sales tax, this “tax bill” offers no incentive, as a sales tax deduction is either an active option or a non-issue. Too Bad, we lose, sort of. If it keeps the economy moving forward, we all gain in the end. In any case, the focus of the government with regard to the auto industry has to be on making cash available for lenders to offer good car loans,  at reasonable interest rates and with dealer support for best practices. The ability to get a car loan is priority one,  before we can capitalize on the sales tax deduction benefit. Keep pestering your Congressperson or Senator to include used cars in the next go round of Auto Bailout Bingo! Read more about government decisions that impact the automobile industry and YOU! —————————————————- Sarah Lee writs about cars. As a 20 +yr veteran of the automotive industry she is a passionate car consumer advocate. Learn more at www.mycarlady.com]]>