Trump says he wants interest on car loans tax deductible if US-made
President Donald Trump said Tuesday that he wanted to make interest payments on car loans tax deductible – but only for vehicles made in America.
Trump had floated the idea at a November rally in North Carolina, according to Reuters. It’s among several proposed tax breaks from Trump, along with an end to taxes on tips, overtime pay and Social Security benefits.
"The next phase of our plan to deliver the greatest economy in history is for this Congress to pass tax cuts for everybody," Trump said in a formal address.
Last week, the House narrowly advanced the GOP plan for Trump’s legislative agenda, kickstarting a process that could extend Trump's 2017 tax cuts and new cuts worth $4.5 trillion over the next decade.
It's unclear how Trump's tax relief for auto loan interest would play out. An unlimited, above-the-line deduction could cost up to $10 billion a year, according to estimates from the Tax Policy Center, a joint venture of the Urban Institute and Brookings Institution.