We
knew
it was coming. Right on schedule, House Speaker Nancy Pelosi (D,
Calif.) has introduced legislation to Congress that would pay drivers
of older vehicles a predetermined sum to replace them with new or newer
cars. Depending on the year of the vehicle being traded in, a voucher
for up to $4,500 would be granted to the driver. This voucher could be
used to purchase a car manufactured after 2004 that has an EPA fuel
mileage rating that is at least 25 percent better than industry average
for its class. Alternatively, a card for a smaller amount could be
redeemed for mass transit fare.
Many in Congress are said to
believe such a program could speed up the turnover from older and
dirtier vehicles to newer, more fuel efficient models as well as
stimulate the economy and provide a boost for the ailing auto industry.
If passed, the plan will reportedly cost as much as $2 billion per year
to operate and would remove around 1 million older cars from the roads
per year.
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