Automobile Taxes to Increase??

Dear Freddy,

I just came home after a month or so abroad, and was informed by some friends that the new tax package will include a tax on automobile purchases. I was told that the initial plan was to impose a tax of 0 for cars up to $ 7000 usd, 25% from 7 to 20000 usd, and 50% tax for cars above the value of $ 20,000 usd. Today a friend told me that the president, upon leaving for Mexico, stated that he would "cut" this tax. Of course now, the question is, "cut" as in eliminate, or "cut" as in reduce, or perhaps another blooper?? The reason that it is a concern for me is that I had planned to purchase a new car this year ( June or so ) but will have to struggle to purchase now. If the tax is for real, of course it is worth the struggle to purchase now, but... how do I know?? I appreciate any info that you have on this matter. Thank you very much.

I called a Senator and contact of mine and he told me that nothing has been concluded so far but that his educated guess is that consensus will be around some scales (in US$) and rates as follows:

US$0 to $7,000 will pay 0% ;
$7,001 to $10,000 will pay 15% ;
$10,001 to $15,000 will pay 30% ;
$15,001 to $20,000 will pay 45% ;
$20,001 to $30,000 will pay 60% ;
$30,001 upwards will pay 80% .

Any idea on when this will be enacted? What is your best guess as to how much time they will allow between the anouncement and the actual appplication of the tax ( i.e., available scramble time to buy a car ) ? Thanks in advance.

It was supposed to be approved today but the process will probably take 1-2 weeks more weeks to be completed and it will enter in to force on january 1, 2001.