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.