We knew it was coming. Right on schedule, House Speaker Nancy Pelosi (D, Calif.) has introduced legislation to Congress that would pay drivers of older vehicles a predetermined sum to replace them with new or newer cars. Depending on the year of the vehicle being traded in, a voucher for up to $4,500 would be granted to the driver. This voucher could be used to purchase a car manufactured after 2004 that has an EPA fuel mileage rating that is at least 25 percent better than industry average for its class. Alternatively, a card for a smaller amount could be redeemed for mass transit fare.

Many in Congress are said to believe such a program could speed up the turnover from older and dirtier vehicles to newer, more fuel efficient models as well as stimulate the economy and provide a boost for the ailing auto industry. If passed, the plan will reportedly cost as much as $2 billion per year to operate and would remove around 1 million older cars from the roads per year.

[Source: Detroit News Photo: Jot Powers - CC 2.5]

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