Smile of cars

What’s it going to take to put you in the driver’s seat of that new car? This should put a smile on your face: Part of the federal stimulus package is a deduction on taxes paid when new cars are purchased. Congress considered, but rejected, another deduction for the interest paid on new car loans. Oklahoma doesn’t assess sales taxes on vehicles. Instead, it takes 3.25 percent of the purchase price on new cars (used cars also have an excise tax, but it’s figured differently). Motor vehicle excise tax collections led all categories in declines for January, compared to January of 2008. The vehicle tax decline was nearly 60 percent. Most car buyers will qualify for the new federal deduction. So in addition to those dealer incentives, Uncle Sam is offering one of his own. Of course all of us will ultimately pay for this deduction through the increase in the federal debt.