Manzullo's Vehicle Voucher Bill Would Strengthen U.S. Auto Industry, End Need for Taxpayer Funding

From the Office of Congressman Don Manzullo

As President Obama announced yet another $30 billion in taxpayer funds for GM on Monday, U.S. Rep. Don Manzullo (R-IL) reiterated the best way to re-start manufacturing and end government intervention in the auto industry is to give Americans incentives to buy cars and trucks again.

Manzullo introduced legislation earlier this year to give Americans a $5,000 voucher to purchase a new vehicle, stimulating auto sales and manufacturing, re-starting the supply chains, and putting millions of Americans back to work. The New Automobile Voucher Act of 2009 (HR 1606) would provide a one-time, $5,000 electronic voucher from the U.S. Treasury at the point of sale of a new vehicle through the end of 2009. It would provide vouchers for 15 million new vehicles.

Every one million in new vehicle sales has the following impact on the economy:

• Creates 60,000 jobs (10,000 at vehicle assembly plants; 50,000 at suppliers, auto dealers, and other businesses).
• Provides $750 million in tax revenue to the federal government.
• Provides $1.4 billion in sales tax revenue to states.
• Saves federal government $1.4 billion in unemployment payments and food stamps.

“My bill will give Americans the incentives and the confidence they need to start buying vehicles again, which will bolster automobile manufacturing and sales, put millions of Americans back to work, and restore the tax revenues our state and local governments need to continue providing services to the people,” Manzullo said. “Unfortunately, Congress and the Administration have ignored my job-creating approach in favor of further government intrusion into the auto industry that has placed tens of billions of taxpayer dollars at risk. That intrusion included the forced closure of Chrysler and GM dealerships that will put 150,000 more Americans on the unemployment lines. And today, GM has become Government Motors as the federal government now owns 60 percent of the company thanks to the latest taxpayer contribution.

“Enough is enough. It’s time for the government to get out of the auto manufacturing business and instead support incentives that will help the U.S. auto industry right itself.”

The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16 million in 2007 to 13 million in 2008 to a projected 9 million in 2009 has been one of the leading causes of America’s economic downturn and huge job losses.