The Tax Break on Car Loans Is a Sideshow: Liam Denning

When Republicans passed their sprawling tax bill, one objective was to bolster American auto plants. The new tax deduction for interest on car loans is welcome. In terms of the Buy America agenda on dealer lots, however, it’s something of a sideshow. The White House and the Federal Reserve are the bigger factors here, not the IRS.

The new law allows new car buyers to deduct up to $10,000 of car loan interest payments when filing federal taxes each year through 2028, provided the vehicle is assembled in the US and bought rather than leased. Given that financing constitutes the lion’s share ...