The TRUTH About Trump’s Auto Tax Gimmick

(00:00.63)

Yep, gimmick. Yep, Trump’s got his auto interest gimmick, because that’s exactly what it is. It’s a gimmick. What do mean, Tris? What do you mean? I think it’s great. You buy an American car and then you’re able to deduct the interest on that car when you buy it. Okay. Okay. Slow down. Slow down, mega crowd. Let me break this down for you. Okay? Mega crowd. Let me explain. Interest.

Interest deductions, whether they be on a car or whether they be on your house or whatever it may be, is a subsidy. Any government subsidy will raise the price of that item. Whether subsidizing college education, subsidizing a home, whatever it may be, it’s going to raise the price. What do mean? It doesn’t make any sense. Yes, it does. Yes, it does.

a house, a car. It’s all a function of what one can afford, right? Monthly payments. What’s that monthly payment going to be? As soon as car companies say, this is awesome. This is freaking awesome, man. This is great. People are not going to pay interest when they take out car loans. Guess what we can do? We can jack up.

price of the car. And that’s exactly what they are going to do. This happens in so many ways. did a, again, this is before podcasts, this is going back, I don’t know, had to be like around 2000 and maybe six, 2007. So I needed a new TV at the time, needed a new TV for my bedroom and went to the Best Buy.

went to the Best Buy and they were having an interest free deal. Two years, interest free, you can buy a TV. So I go to the sales people, I’m gonna sound like Maniscalco, I paid cash, I gotta pay cash right here. I get a better deal.

(02:21.688)

confused the salesperson at the time. Confuse the salesperson. what do mean? Well, listen, I’m going to pay for it in full right now. Rather than financing it at 0 % interest for two years, shouldn’t I get a better price if I do that? Wrong. No, no, no, you’re not. The cost of money.

It was actually priced into every television that they sell. So even if I paid in full, I’m essentially helping to subsidize other people who are not paying in full for their TV. That’s how it works, kids. Okay. That’s how it operates. I mean, figuring Donald Trump out, he’s, again, he’s smarter than this. He knows damn well it’s a gimmick.

Donald Trump does a lot of stuff and says a lot of stuff for populist and political reasons. He does. He wants people to cheer him on and think he’s a swell guy. And many people are going think, wow, that’s awesome. Look what he’s doing for all of us. doing anything. OK? Not doing a damn thing. OK, all right, buy American car and be able to duck the interest. Again, another stupid.

gimmick you’re going to throw into the tax code to make your bloody taxes at the end of the year and your accountant even want to pull his hair out here or her his or her hair out even to a greater degree yeah okay Magna Crack that’s how it works okay if you don’t understand okay go back and re-listen to the podcast you’re not getting any great deal Blackstalk on WallStreet.com