Trump said he will be announcing a new auction for used cars at a press conference on Wednesday, where he also will announce the end of the tax credit for the purchase of used vehicles.
Trump will announce at 10 a.m.
ET, the president tweeted, that he will end the tax break on the purchase or lease of a used car, but he will also be extending the tax deduction for the owner-occupied rental of a vehicle for five years.
Trump said he wants to “end the tax loophole that has allowed the wealthy and powerful to use their vast wealth to purchase their own vehicles,” and he said he is proposing a “burdensome” new rule to curb “this perverse practice” by the IRS.
“This is a huge, huge tax break for the rich, and it’s a huge tax giveaway for the wealthy,” Trump said.
“It’s a tax break that they don’t need, and they should be able to do without it.”
The tax credit has been in place since 1983, when Congress extended it for a year.
The exemption allows for the buying of a car for less than $6,500, and for the sale of a certain number of used cars for $10,000 or less.
It is currently available for people buying a car at a dealer and leasing it, or at a certain price.
The IRS is set to begin the first round of auctions starting Friday, and the new rule will end this year.
The tax break has allowed for the purchases of used autos, such as cars for individuals and families and used pickup trucks, for more than $8 billion, according to The Associated Press.
It has also allowed some people to take their cars for a longer period of time than they otherwise would have been able to, though the average period of ownership has remained about 10 years.
The White House released a report on the tax exemption in April that found that in 2013, the average owner of a $35,000 car took about four years to purchase the car.
That year, the tax advantage for the buyer was worth $3,700.
By 2019, the exemption had grown to $9,500 for individuals, $16,000 for families, and $24,000 in the case of a pick-up truck.