Obama’s Hidden “Clunker” Tax
Tags: Obama Depression.
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Gee, what a nasty surprise:
The Cash For Clunkers program is adding to the activity at treasurers’ offices all around South Dakota. First, people were asking for proof of ownership, so they could show they owned their vehicle for a full year, allowing them to cash it in. Now, they’ll be returning to register their new vehicle. And when they do, new owners need to bring every bit of paperwork provided to them by their dealer.
“That means they need their title, their damage disclosure, their bill of sale and the dealers have 30 days to get that to them,” Minnehaha County Treasurer Pam Nelson said.
But many of those cashing in on the clunkers program are surprised when they get to the treasurer’s office windows. That’s because the government’s rebate of up to $4500 dollars for every clunker is taxable.
“They didn’t realize that would be taxable. A lot of people don’t realize that. So they’re not happy and kind of surprised when they find that out,” Nelson said.
Its all a shell game – it has made it appear there’s been an increase in car sales; an increase in economic activity…it has allowed Obama and the money men to say that they’ve got green shoots popping up all over the place. But, its all BS – and now its taxable BS.
It just moved money around, and the people who got some of transferred money will now have to pay a tax on it. Geesh.
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17 Responses to “Obama’s Hidden “Clunker” Tax”
Caucus of Corruption
It is bait and switch BS – just like Obamateur’s “tax cut”!
People do not realize that the “cut” has been in their withholding. But at the end of the year, they would owe the same tax as they did last year. The tax tables have not changed just he amount of the withholding, which the lemmings believe is a tax cut.
One way or another Obamateur is getting your money and fooling you to believe that you are getting the benefits of his benevolence.
The old bait and switch – which is illegal for retailers to do.
so why do i have to give my money to the tax man instead of using it to buy a table to put food on…when they just take it and give it to some guy that is wealthy enough to buy a new car?
truly incredible,
a fool and his money will be soon parted.
there is no such thing as a free lunch
One thing I would like to know is how much did this subsidy cost us? If the US ended up spending 3.23 million dollars on clunkers–how many did we buy at $3,500 – $4,500 per car? How much was the overhead for this wonderful program that can’t keep it’s computer system online if two people log in at the same time? Hopefully, not the $17 million like we did for the WH website.
One thing I am sure of though is if I was planning on giving another 50% increase to the losers at Education and ended up only giving them 40% increase–every CongressCritter and the President himself would declare “victory” and claim a 10% tax cut and we should all be happy about the money we are saving.
Had a girlfriend like that once…”look how much money I saved you dear.” Saved even more after dumping her on someone else and not spending the money in the first place ~ no matter how much I saved.
Reminds me of all the free cars Opra gave out a few years ago. Many of the recipients were livid that they had to pay taxes on the value.
you can bet your bottom dollar that all those cars they took in…over half a million…are going to end up on a ship to japan or china…
not much of that benefit will be to americans…not even the 4500 discount…cause if ya really think about it…its money the buyer will never realize because of the rust that rots those things of this world…ie…immediate depreciation of those vehicles excede the giveaway….and to trash all those vehicles for naught…because all those new cars mileage estimates are not solidly defined nor proven…the only ones to benefit from this are the sales men who get thier commissions…its christmas time…80% of the real profit goes to non US auto manufacturers….
stimulus?
more like the shell game….
then again, did you ever get a notion that those cars are seriously overpriced to start with….hmmm
If we allow persons born in the US of alien fathers to be President of the US then Kim Jong Il, Osama Bin Laden and Mahmoud Ahmadinejad are all eligible to have their direct offspring become President of the United States and Commander In Chief of our Armed Forces.
That is what you are saying if you think Obama is eligible to be President. If u folks fought as hard against him as you do against the health care and the clunker program, no court in America would refuse to hear our voice.
Reminds me of all the free cars Opra gave out a few years ago. Many of the recipients were livid that they had to pay taxes on the value.
Exactly. In the present case one has to ask, what part of “rebate” did they not understand? Also, is it typical in SD to have to go to the treasurer’s office to register a new vehicle? Around here the dealer takes care of all that.
Hmmmm… I always have to go the DMV to register any vehicle I buy. And that, of course, gives me such an optimistic glow as I envision yet another government bureaucracy being created, one even larger and far, FAR, more powerful and intrusive into my life.
The debacle that is the Cash for Clunkers program ought to be a red flag, warning us of how stupid Congress can be and how ignorant they are of the Inevitable Rule of Unintended Consequences.
As one who grew up believing that if you watch the pennies, the dollars will take care of themselves, as one trained to not waste, to use and reuse, it is deeply offensive to me to see perfectly good vehicles destroyed. Now, if the feds had been determined to ignore the 10th Amendment and give out money to get new cars out of inventory, they should have set guidelines that cover really useless vehicles–dangerously old, perhaps, or sitting on blocks in blighted neighborhoods. But all they did was illustrate the oblivious elitism of “let them eat cake” as they wantonly destroyed functional vehicles in the pursuit of some unrealistic fantasy.
rico, are you saying that the dealer registers your new vehicles and sends or even delivers the plates to you? Wow, what service! Mine merely send the title work to the DMV, hopefully within the time period my temporary registration is valid.
Do they also do windows?
Amazona: rico, are you saying that the dealer registers your new vehicles and sends or even delivers the plates to you?
Yeah. The dealer figures out all the taxes and fees. You sign the forms in the showroom, the dealer submits them, and the plates come in the mail. You never have to interact with DMV. I thought that was SOP everywhere. Then again, the only new cars I ever bought were in CA.
Do they also do windows?
Of course! They detail the whole vehicle before it leaves the lot. And though I don’t normally get work done at the dealership unless it’s under warranty (or a recall item — I’ve had a couple of those), they’ll drive you home when you drop the car off, pick you up in the afternoon, and wash the thing for you before you drive off. Isn’t that SOP too?
breaking news……..
the $4500.00 or so dollars “rebated” on the cash for clunkers program will be added as INCOME to those received it.
It may put some in a higher tax bracket, and many will OWE money at the end of the year now in stead of a small refund…….thanks obama!!
breaking news……..
the $4500.00 or so dollars “rebated” on the cash for clunkers program will be added as INCOME to those received it.
Why is that breaking news? Come on, it’s a freakin’ rebate. Said in another way, how is it different than any other rebate?
I’ve never gotten a dealer rebate since I always buy used cars. Do they provide a form to the buyer and the IRS identifying the rebate as income? If not, I doubt anyone ever reports it themselves when they do their taxes.
And in my state the dealer usually takes care of tax, title, and tags. They just roll it into the cost of the car. In a couple of weeks you get a notice in the mail that you can pick up your plates at the DMV.
Per cars.gov:
Is the credit subject to being taxed as income to the consumers that participate in the program?
NO. The CARS Act expressly provides that the credit is not income for the consumer.
http://www.cars.gov/faq#category-06
That was a local tax those people had to pay, not a federal tax.
wondermade
thanks for the clarification, the way it was being reported it was added to the federal income.