[Congressional Record Volume 155, Number 9 (Thursday, January 15, 2009)]
[Extensions of Remarks]
[Pages E98-E99]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        GET AMERICA MOVING AGAIN

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                       Thursday, January 15, 2009

  Mr. MANZULLO. Madam Speaker, today I am privileged to be joined by my 
good friend and co-chair of the Congressional Automotive Caucus, 
Representative Fred Upton, in introducing the Get America Moving Again 
Act of 2009.
  This bill is simple. It provides a tax credit of $5,000 for any new 
vehicle purchased from January 1, 2009, until December 31, 2009. In 
order to prevent a large drop off in new car sales next year, the tax 
credit would be cut in half to $2,500 starting on January 1, 2010. The 
tax incentive would then expire on December 31, 2010. In addition, the 
bill provides a tax credit of $2,000 for any late model used vehicle 
purchase, as defined as 3 years old or less, from January 1, 2009, 
until December 31, 2009 so that automobile dealers are not saddled with 
unsellable used cars. This tax credit would also be cut in half to 
$1,000 starting on January 1, 2010 and would also end on December 31, 
2010. The tax credit would be limited for vehicles that cost under 
$50,000 and would only be allowed for households with an adjusted gross 
income of $250,000 or less. I am also working on a second alternative 
bill that will move this tax credit concept to a voucher system so that 
consumers can see the immediate benefit of this incentive at the point 
of sale of a vehicle.
  Madam Speaker, I am introducing this bill today because we need to 
get people thinking now about ways to re-ignite consumer demand for 
vehicles. Our economy is in crisis today because of insufficient 
consumer demand for goods and services due to the fear in this country 
of making a significant purchase. All the economic stimulus plans that

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are being discussed deal with bailing out people's mistakes or using 
taxpayers' dollars for public works projects and more government 
programs. Some also talk about the government creating ``new jobs'' but 
they don't understand that there are still jobs in existence and all 
they lack is orders from consumers.
  We need something easy to understand that is considerably less 
expensive for the taxpayer than current proposals. We need a proposal 
that will begin to restore our economy immediately by providing a 
significant incentive to purchase the second largest purchase a typical 
consumer will make in their lifetime (after housing) in order to help 
jump-start the economy.
  First, in 2007, about 17 million new vehicles were sold in America. A 
year later, only 10 million cars were sold. This represents a net loss 
of 7 million cars. At an average price of $25,000, this loss of new car 
sales translated into $175 billion that was directly removed from the 
economy in 2008. If we can get back to selling 15 million cars, that 
would add about $125 billion directly into the economy. Multiplier 
effects of between 3 to 7 percent could increase the U.S. economic 
benefit of selling 5 million more cars up to $900 billion.
  Second, when cars and trucks start selling, it moves inventory from 
factory lots and dealers showrooms. It pays salaries of all the vehicle 
assembly workers, dealers, and employees. It replenishes local and 
state sales tax receipts. It restarts manufacturing and supply chains 
and the economy begins to boom again because vehicles are the second 
biggest consumer item (after housing).
  Third, by offering a tax credit of $5,000 for the purchase of a new 
car or truck, an individual could buy, for example, a new Chrysler Jeep 
Patriot (assembled in Belvidere, Illinois, which I am proud to 
represent) for less than $15,000 or around $200 a month for 5 years. 
This incentive is large enough to encourage consumers on the fence to 
make the decision this year to buy a car.
  Fourth, we need to implement this tax incentive immediately while 
people who still have jobs are able to buy a new car.
  We will continue to lose jobs until items are again purchased. Common 
sense and sound economics have given way to ``I want my fair share of 
the stimulus'' mentality. No one is thinking about the massive 
inflation and the higher taxes that will eventually be necessary to pay 
for the current stimulus and bailout proposals. Many are unfortunately 
focused on the pre-eminence of ``the government is the only answer'' 
doctrine. There is little regard for restarting our economy from the 
bottom up.
  While government cannot be the answer, it can be part of the 
solution. We can do things now that will drastically alter the negative 
course we are on. Thus, I urge my colleagues to join Rep. Upton and me 
in co-sponsoring the Get America Moving Again Act of 2009.

                          ____________________