Trump to propose new tax break on car loan interest

Trump to propose new tax break on car loan interest


Republican presidential nominee and former U.S. President Donald Trump gestures as he speaks during a campaign event at Riverfront Sports in Scranton, Pennsylvania, U.S. October 9, 2024. 

Brendan McDermid | Reuters

Donald Trump on Thursday will support making interest on car loans fully tax deductible, the latest in a suite of tax-cut promises the Republican presidential nominee has made in the weeks before Election Day.

Trump, in a speech to the Detroit Economic Club, will compare the plan to an existing tax deduction on mortgage interest, according to excerpts provided beforehand by the Trump campaign.

The plan “will stimulate massive domestic auto production, and make car ownership dramatically more affordable for millions of working American families,” Trump will say.

The former president will also promise to bar Chinese-made autonomous vehicles from driving on American roads if he defeats Democratic nominee Kamala Harris in the Nov. 5 election.

Trump has repeatedly accused Harris, the vice president, of copying his economic policies. But his plan to keep out Chinese cars appears to mirror a recent proposal by President Joe Biden’s Department of Commerce.

Any plan to change the tax code would have to go through Congress, which holds the power of the purse under the U.S. Constitution.

Trump has already voiced support on the campaign trail for a slew of other tax breaks, including ending taxation of service workers’ tips and seniors’ Social Security benefits.

He has also vowed to bring back a deduction on state and local taxes — which was capped by his own 2017 tax law — and further slash the corporate tax rate to 15% for companies that manufacture products in the U.S.

On Wednesday, Trump told The Wall Street Journal that he supports ending the “double taxation” of U.S. citizens living abroad.

Multiple economists and tax experts have warned that Trump’s economic plans, including his vow to impose sweeping tariffs on imported goods, would cost the federal government trillions of dollars in lost tax revenue.

This is breaking news. Please refresh for updates.



Source

House Republicans take up Trump’s megabill, but still need more votes to pass it
Politics

House Republicans take up Trump’s megabill, but still need more votes to pass it

US House Speaker Mike Johnson, a Republican from Louisiana, speaks to members of the media at the US Capitol in Washington, DC, US, on Friday, June 27, 2025. Graeme Sloane | Bloomberg | Getty Images The House of Representatives on Tuesday took the reins of President Donald Trump’s megabill, after the Senate narrowly passed it […]

Read More
GOP Sen. Murkowski cast crucial vote for Trump’s megabill after getting key carveout
Politics

GOP Sen. Murkowski cast crucial vote for Trump’s megabill after getting key carveout

U.S. Senator Lisa Murkowski (R-AK) walks after the Senate passes U.S. President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., U.S., July 1, 2025. Elizabeth Frantz | Reuters Republican Sen. Lisa Murkowski of Alaska cast a critical vote Tuesday for President Donald Trump’s massive tax-and-spending bill, helping to push the […]

Read More
U.S. judge blocks Trump administration move to overhaul health agencies
Politics

U.S. judge blocks Trump administration move to overhaul health agencies

U.S. Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. looks on as he attends a press conference to discuss health insurance reform, at the Department of Health and Human Services in Washington, D.C., U.S., June 23, 2025. Kevin Mohatt | Reuters A federal judge on Tuesday blocked the Trump administration from moving forward […]

Read More