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Even More Collateral Damage From Cash for Clunkers: State Revenues Drop


Even More Collateral Damage From Cash for Clunkers: State Revenues Drop

Is anyone keeping score on the pros and cons of the recent Cash for Clunkers program? If so, slide another bead across the abacus. We can’t tell you exactly which way to slide it, though.

MSNBC.com is reporting the latest, that many states saw a nice gain in sales tax revenue when car sales went up during the Clunkers program. That’s good, and it seems much of that cash went to education, at least in some states.

But then the sales fell off the cliff when the program ended, and so tax revenue also fell down, maybe causing losses that are worse than the gains in some states. That’s bad.

We’ll have to call this one a draw.

 


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