The TRUTH About Trump's Auto Tax Gimmick

Chris calls Trump’s auto interest deduction a “gimmick,” warning it’ll jack up car prices like any subsidy. He breaks it down: car companies will hike costs, negating any savings—just like his 2007 Best Buy TV lesson. No win for MAGA! www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Yep, not a gimmick. Yep, Trump Scott's auto interest gimmick,
because that's exactly what it is. It's a gimmick. What
do you mean, Chris? What do you mean?

Speaker 3 (00:24):
I think it's great you're buying America collar and then
you're able to deduct the interest on that car when
you buy it.

Speaker 2 (00:31):
Okay, Okay, slow down, slow.

Speaker 3 (00:34):
Down, Maga crowd.

Speaker 2 (00:37):
Let me break this down for you. Okay, Maga 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

(00:58):
will raise the price of that item. By subsidizing college education,
subsidizing a home, whatever it may be, it's going to
raise the price.

Speaker 3 (01:10):
What do you mean it didn't make any sense?

Speaker 2 (01:12):
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, oh cool, this is awesome.

Speaker 3 (01:33):
This is freaking awesome.

Speaker 2 (01:35):
Man, this is great. Uh, you know we're gonna be
keep not gonna pay interest on you know when they
take out car loans, guess what we can do. We
can jack up the price of the car. And that's
exactly what they are going to do. This happens in
so many ways. I did a yet this before podcast.

(02:00):
This is going back. I don't had to be like
around two thousand and maybe six, two thousand and seven.
So I needed a new TV at the time. I
need a new TV for my bedroom and went to
the best Buy. Went to the best Buy and they
were having they were having an.

Speaker 3 (02:19):
Interest free deal. Two years interest free you can buy
a TV. So I go to the sales people are
want to sound like Manu Scalco, I pay cass shit,
I gotta pay cash right here. I get a better deal.

Speaker 2 (02:36):
No, I confuse the salesperson at the time. Confuse a salesperson,
what do you mean? Well, listen, I'm gonna pay for
it in full right now, rather than you know, financing
it at zero percent interest for two years. Shouldn't I

(02:56):
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. How

(03:19):
it works, kids, Okay, that's how it operates. 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

(03:42):
him on and think he's a swell guy. And many
people are thinking, oh wow, that's awesome. Look what he's
doing for all of us. Any Okay, not doing a
damn thing. They are my American car and be able
to duct the interest on that. Again, another other stupid
gimmick you're gonna throw into the tax code to make

(04:04):
your bloody taxes at the end of the year. You're
accounting even want to pull his hair out here her
his or her hair out even to a greater degree. Yeah, okay,
mag and crack, that's how it works. Okay, you don't
understand Okay, go back and re listen to the podcast
You're Not Getting any Great Deal livestock on Wall street

(04:26):
dot com