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That's what I'm saying. You will get a tax break if you're the kind of guy that buys cars that are worth some triple digit number. How is that supposed to help the national debt? And it's supposed to help stimulate car ownership, but how does it do that?

 

First, interest on a car loan for an individual, to my knowledge, is not tax deductible. Sales tax is, but not interest.
Interest on Mortgages is tax deductible. The reasoning as to why that would encourage home ownership is that saving money on taxes means you have more money for other things.

This was much more efficient for people when the standard deduction was much less. It can still be useful for people with other deductible expenses (Medical, charitable donations, etc).

*I am not a CPA and don’t play one on TV

 

@hill seemed to be talking about possible future policies for reducing federal debt under the new administration. I was also referring to a future policy promised by the new administration:
Trump promises new tax relief for car loan interest and citizens living abroad | CNN Politics

From what I understand, if the new administration/president gets his way, tax incentives will be taken off of EV purchases and placed on vehicle purchases of those that roll in cash. Sure, someone with a lot of medical bills but still on a measly median wage might also benefit if they can both afford the medical bills and new car at the same time.

But all in all, we have no idea what policy promises will actually come to fruition and which ones won't, nor do we know how exactly they will affect the economic situation.