Senators from Oklahoma , oppose ‘clunkers’ extension

WASHINGTON — Oklahoma’s senators said Tuesday that they oppose extending the government’s Cash for Clunkers program.

Sen. Jim Inhofe called it a "regressive tax.”

Inhofe and Sen. Tom Coburn, both Republicans, criticized the program on the same day Senate Majority Leader Harry Reid said the Senate will vote this week on adding $2 billion to the $1 billion already spent. Reid, D-Nev., said there are enough votes to approve the program’s extension.

The House last week overwhelmingly approved the extension, directing that money be taken from stimulus funds.

Inhofe said Tuesday, "On the surface, the Cash for Clunkers program may seem like a good idea. However, closer examination highlights why government should not get into the business of running businesses. It just doesn’t work.”

Steve Rankin, president of the Oklahoma Automobile Dealers Association, said Monday that the program — which offers rebates up to $4,500 for trading in used cars and sport utility vehicles for vehicles that get better mileage — had generated a lot of interest, along with a lot of headaches.

"Our main concern now is just that (dealers) get paid” for the cars they’ve sold through the program, Rankin said.

Dealers have had serious problems trying to process their sales on the government Web site, Rankin said. He said the office manager for one car dealer had worked through the night this past weekend trying to process the 60 sales made through the program and was able to complete only two.

"It’s a laborious process,” Rankin said. "It’s hard to get through.”

Rankin said many dealers had invested advertising money connected to the program, on top of the price reductions they had made in anticipating the government payments. Now, he said, they’re worried about getting their reimbursements.

Though the program has drawn praise from the National Automobile Dealers Association and many lawmakers for moving cars off of dealer lots, Inhofe cited estimates that only 50,000 cars had been sold that wouldn’t have otherwise.

"That means that taxpayers have spent $20,000 for each additional sale,” said Inhofe, of Tulsa. "The program simply feeds the myth that the government offers something for nothing when in reality, the program acts as a regressive tax. By mandating that dealers destroy perfectly good cars that are traded in, the used car market has less supply, meaning higher costs. This means that many Americans who, even with the government incentive, cannot afford to purchase a new car will end up being charged more when trying to purchase a used car. This program should be ended, not extended.”

Coburn said farmers were going to their barns to get pickups to trade in through the program.

"Americans aren’t stupid,” he said.

But he said Congress didn’t have the money to fund the program.

"We’re going to steal it from our children,” said Coburn, of Muskogee.

Coburn spokesman John Hart said the senator hopes to be able to offer amendments to the $2 billion extension "dealing with the cost and the structure of the program.”


from the oklahoma