President Trump wants to make paying for American-made cars cheaper! He suggested letting people deduct the interest they pay on car loans from their taxes. This means they would pay less in taxes.
This idea is like getting a discount on your car loan if you buy American. But some people think it mostly helps wealthier people who buy expensive cars.
- It might cost the government a lot of money!
- It could save some people a few hundred dollars a year on their car payments.
- It's not clear exactly how much it would cost or save people.
| Item | Estimate |
|---|---|
| Cost to the government (all car loans) | $61 billion over 10 years |
| Cost per year (all car loans) | $10 billion |
| Average new car loan | $41,000 |
| Possible savings per year (for some) | A few hundred dollars |
