New Auto Loan Tax Break: A Questionable Boost for American Car Buyers

President Donald Trump’s signature tax-cut legislation included a seemingly generous provision: allowing taxpayers to deduct interest on auto loans for new, U.S.-assembled vehicles from 2025 through 2028. This move, pitched as a way to "stimulate massive domestic auto production" and make car ownership more affordable, raises critical questions about its real-world effect on American families and the domestic auto industry. Is This Tax Break Meaningful for Everyday Americans? While the idea of deducting interest on car loans echoes the long-standing mortgage interest deduction—cherished by millions—it comes with significant caveats that dilute its reach. The deduction applies only to new vehicles...