No Auto Stimulus for Californians

Obama’s plan will provide some tax relief for new car buyers:

In an example provided by Mikulski’s office, a family making $100,000 a year purchasing a $23,600 Chevrolet Malibu would save about $395 in income tax.

California’s plan will increase the cost of buying a new car. Using the numbers from the above example, the vehicle license fee will go up by $118 and the sales tax will be $267 higher.

In other words, Californians will only benefit by about $10 for a new car purchase. It’s a good example of federal and state governments not aligning their economic goals. I hope the auto industry is not banking on an increase in demand from Californians.

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19 Responses to “No Auto Stimulus for Californians”


  1. 1 woltmon February 17, 2009 at 10:36 PM

    Well, im not one of the americans who will be buying a new car anythime soon, so im not sure if this will help me, but i suppose its nice to Know that the president is doing something to help out americans.

  2. 2 mrrodenas February 18, 2009 at 10:24 AM

    After reading this article I am left wondering “Why do we need more cars on the roads? What is the goal of boosting auto sales through tax incentives?”

    What we really need is to fund efficient widespread public transportation in environmentally friendly forms such as electric high frequency buses within cities and towns as well as high speed and light rail along commuter corridors. Such an initiative would represent both an investment in public works (building infrastructure and creating jobs) and a long-awaited shift towards decluttering the massively highway-centered, car-driven landscape that frames our lifestyle.

    I would recommend that automakers start supporting a sustainable vision for our country by investing in new means of public and energy efficient transportation appropriate for the 21st century. That might be the sensible way to turn around their industry adapting it to the upcoming needs of our evolving society.

  3. 3 Jay Surface February 18, 2009 at 11:06 AM

    This article just proves how messed up the California government is so screwed up. Here Obama is trying to help out the country, but then Arnold turns around and makes it not apply for Californians. Arnold has done such a terrible job in office that he has been forced to scarmble to try and come up with ways to generate revenue for the state. This vehicle license fee and tax on rounds of golf are not the answer for California. Smart voters, new governor, and new senate is the answer.

  4. 4 Mva89 February 18, 2009 at 11:52 AM

    An increase in demand for cars is what the auto industry needs in order to survive, and if the auto industry doesn’t survive, we’re talking millions of people losing their jobs, resulting in an increase in expenses for the government. If we need more cars on the road or not is a whole different argument, although I agree that good and affordable public transportation should be focused on more, at least in the future. However, it is disappointing to see that federal and state government are that out of sync when it comes to saving the economy.

  5. 5 Andrew Curry February 18, 2009 at 2:44 PM

    I am interested in buying a new car in the next few years and was excited to hear about this “auto Stimulus” plan for the industry. but saving about $10 will not give me anymore incentive to purchase a new car. it wont stop me from buying one either though. i agree wiht the person that posted before me, that Arnold hasnt done that great of a job trying to save california money, hes blown so much that now he is “scramabling” around trying to find more ways of making money

  6. 6 Rafael Barrera February 18, 2009 at 8:25 PM

    This is upsetting to read about. This is what happens when state gov and fed gov systems collide. I do agree that we need less cars on the road but just like Mva89 says, if people stop buying cars than that means trouble for us.

  7. 7 Heidi11 February 18, 2009 at 10:08 PM

    California’s plan is absurd. With the auto industry collapsing, there is no time for legislation like this. My father works in the car business and he tells us all the time of dealerships closing left and right. Legislation like this can only make things worse. I do not even understand what the logical was behind this plan. California needs to get its act together ASAP and start producing legislation that will actually help people and the economy. It seems to be unaware of the general tone of the country.

  8. 8 Lucas Tirelli February 20, 2009 at 7:04 PM

    I don’t think that this auto stimulus plan will give an incentive to buy a car to people who don’t really need one. Consumers won’t buy a car to get ten dollars in return. However, it would be really good for the economy if consumers found this plan interesting, and came to buy cars. But in my opinion, this will not happen. In order to stabilize the economy, people must consume much more than what they are right now. Unfortunately, it is not an easy task because consumers are scared to lose their job, which lead them to save their money.

  9. 9 Tim Honeycutt February 20, 2009 at 8:39 PM

    I don’t feel like a savings of $400 will make enough people say, “now i’ll buy that car i have been wanting”. It seems stupid because if you are buying a 15K car, what difference is four hundred dollars really going to make. I see why California is imposing this tax. Either way, i don’t think californians will buy any more or less cars, and california can get more money to lessen the debt.

  10. 10 jenna s February 22, 2009 at 1:49 PM

    I think that California is just trying to find a way to resolve its budget problems by implementing higher car taxes. If the state were not losing so much money, the car tax would be unnecessary. With deteriorating roadways, it is no wonder the state is heavily taxing new cars. On the other hand, California is trying to discourage the continuation of conventional vehicles. I feel that the state is pushing towards engineering alternative fuel cars. The success of such a venture is still up in the air. Maybe this is a step in a new direction.

  11. 11 btorres February 24, 2009 at 3:02 PM

    this notice will not affect me because at this moment I’m not interesting in buying a new car. In the other hand, will affect people who wants to buy a new car. They are going to think twice after buying it. This is one way that the economic can get better or can try to get the improve the budget. One more option the the country can get money from all of us.

  12. 12 Melissa Schmitt February 25, 2009 at 11:48 AM

    i think that the federal government and the state need to find a way to save americans more money because a savings of 10 dollars is not going to encourage many Californians to go out and buy new cars i they are saving 10 dollars. President Obama has the right idea to save the car industry but with a raise in taxes and the liscence fee. The car industry will continue to suffer. i believe that there maybe a few more people that might buy cars but i think people are going to stay with their cars.

  13. 13 Luis Orozco 101 February 26, 2009 at 11:39 AM

    Obama is really doing his job in the white house, and Arnold is just getting worst the situation in California!

  14. 14 Houck24 March 15, 2009 at 4:28 PM

    The federal government and the state government need to do a better job in working together to get us out of this crisis. If anyone thinks saving $10 is going to stimulate the Automotive market than they are crazy! With the Automotive Industry Collapsing I dont know what California is thinking.

  15. 15 Claudio Ramirez March 18, 2009 at 5:46 PM

    I am not one of the Californians that will be buying a new car..but it seems like a pointless gain that California is making in the midst of a Auto Industry Crisis. It seems like the State and Federal Goverment are not on the same page during a time of recession which doesnt make sense to me, and change is needed either way.

  16. 16 Gilberto Vazquez March 18, 2009 at 10:00 PM

    it stuff like this that really doesnt help the economy get better. but what can the state do if they are in such economic woes? its not like the state intentionally did this to mess with obamas plan….or did they???

  17. 17 quique March 19, 2009 at 7:48 PM

    Personally the Govt. should do more to give an incentive towards buying a car. Although some people, most people will not be buying cars soon this is a start I believe to getting where this nation needs to be.

  18. 18 Gabriel Mayora May 13, 2009 at 2:34 PM

    I will not be one of the americans who will be buying a new car anytime soon but i suppose its nice to Know that the president is doing something to help out americans. I think many fellow americans agree with me as well. Just the evident fear of spending in this economy decreases the demand for automobiles. But it is what the economy needs. An increase in demand for cars is what the auto industry needs in order to survive. But if one is thinking about buying a car, his is the time.

  19. 19 Tom Jones May 17, 2009 at 7:01 PM

    Since California can not receieve any auto stimulus making it harder for us to purchase cars at a reasonable value. The plan for us will increase the cost of buying a new car which all the other fees will dramatically add up and force many people to settle for pre owned cars, stay with there own car or buy from a private seller and having that seller reduce the tax on the pink slip.


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