As one of the biggest manufacturing and retailing sectors in the U.S. economy, the automobile industry is clearly a top choice for stimulus plans aimed at reviving the economy. Two of the proposals being considered:

1. Tax breaks for consumers who buy new vehicles and/or fuel-efficient hybrids. The desired incentives would be a combination of new incentives and extensions of credits already in the tax code. One proposal supported by Democratic Sen. Barbara Mikulski of Maryland and Republican Sen. Kit Bond of Missouri would permit new car buyers to deduct auto loan interest and sales tax on their personal income taxes.

2. “Cash for Clunkers”. This initiative encourages consumers to upgrade their older cars to cleaner, more fuel-efficient models. Drivers would get up to $4,500 in vouchers when they turn in an old fuel-innefficient vehicle for a vehicle that gets good gas mileage.