Senate OKs tax breaks for new car buyers

The U.S. Senate has voted to give a tax break to buyers of new cars, setting aside bipartisan worry over the size of an economic stimulus bill already costing close to $900 billion.

The vote was 71-26 to allow many car buyers to claim an income tax deduction for the cost of automobile sales taxes and interest payments on car loans.

Democratic Sen. Barbara Mikulski proposed the tax break, which would go to individuals earning up to $125,000 and couples with incomes of as much as $250,000 a year.

The proposal was added to the stimulus bill now making its way through Congress.