Today's Outrage: Help Car Buyers If Not Carmakers
The way I see it, taxpayers are going to be helping U.S. carmakers one way or another.
If Congress doesn't come out with an official bailout, then
General Motors
(GM) - Get General Motors Company Report
,
Ford
(F) - Get Ford Motor Company Report
and Chrysler will likely seek a back-door bailout by declaring bankruptcy and dumping their burdensome employee retirement obligations on the U.S. Pension Benefit Guaranty Corp.
OK, the PBGC isn't directly supported by taxes and isn't officially backed by the U.S. government -- but that's what they said about
Fannie Mae
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and
Freddie Mac
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, right?
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The PBGC is already burdened with a nearly $11 billion deficit for fiscal 2008 after taking over pension plans dumped in recent years by U.S. airlines, including
UAL
(UAUA)
,
US Airways
(LCC)
and
Delta
(DAL) - Get Delta Air Lines Inc. Report
.
If the carmakers don't get help from Congress, you can be sure they'll follow the example of the airlines.
Where it gets really interesting for lawmakers is deciding whether foreign carmakers should get help, too. These days,
Toyota
(TM) - Get Toyota Motor Corporation Report
,
Honda
(HMC) - Get Honda Motor Company Ltd. Report
,
Daimler's
(DAI)
Mercedes and
BMW
have almost as many factories and employees in the U.S. as the so-called Big Three.
So maybe the best solution is to offer a
deduction to U.S. taxpayers along the lines of the mortgage deduction. Even crappy cars may move off the lots if they become more affordable.
After that, let's ditch the gas tax so we can afford to fill up the tanks of our big, shiny, new American
gas guzzlers
.
