Trump announces he would make car loan interest deductible, end double tax on foreign income

Former President Donald Trump promised Thursday he would make interest incurred on car loans fully tax deductible during his second term and would end double taxation for Americans living abroad — plans critics warn would raise prices and blow a gaping hole in the federal budget deficit.“Today, I am also announcing that as part of our tax cuts, we will make interest on car loans fully tax deductible,” Trump told a friendly audience at the Detroit Economic Club.“This will stimulate massive domestic auto production, and make car ownership dramatically more affordable for millions and millions of working American families,” the former president added.Hours earlier, the 78-year-old Republican nominee released a video saying he would also put an end to double taxation.US citizens who live abroad must still file tax returns with the Internal Revenue Service, meaning that in some cases, they have to pay US and foreign taxes on the same income — though in many cases they can claim a deduction on foreign rates.The IRS only forces US citizens living abroad and earning more than $126,500 per year to be taxed.“Once and for all, I’m going to end double taxation on our overseas citizens,” Trump said in his video announcement.“You’ve been wanting this for years, and nobody has listened to you, and you deserve it, and I’m going to do it,” he added.

“It’s the right thing to do, and no American leader has ever been willing to stand up and commit to you the way that I have on many things, but this is a very important element for your safety, security, and, frankly, for your wallet.”The latest tax policies add to Trump’s other proposed breaks — including to end levies on tips, Social Security and overtime payments.In Detroit, the former president declared it was his “goal to get our country on an auto-making path” and repeated his pledge to reduce the tax rate to 15% for companies who make their products in the US.“US-based carmakers and m...