Cash for Clunkers. The “Consumer Assistance to Recycle and Save Act” (H.R. 2751) would authorize $4 billion for an auto trade-in program that’s also known as “cash for clunkers.” Under the program, consumers would be offered rebates of up to $4,500 if they trade in their old cars for more fuel-efficient ones. The vehicles traded-in would have to be destroyed, meaning that cars not yet ready for the junkyard would be taken off the road, reducing the stock of used vehicles and inflating the price of used cars.
The House passed H.R. 2751 on June 9, 2009, by a vote of 298-119 (Roll Call 314). We have assigned pluses to the nays because the federal government should not be subsidizing the automotive companies via vouchers to customers. Besides, it’s unconstitutional.
