Turns Out The Cash4Clunkers $4500 Is Taxable (The Government Hosed You!)

Keoland Television

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.

How sneaky and horrible of the government! Like we need more taxes to pay.

I would like to lay some blame on the media for not bringing this to light!

Karl Denninger gives a great summary of how the people got screwed twice over. Government (And Car Dealers) Hose You Again

[edit on 8/25/2009 by Tentickles]

From the article:

Nelson adds that if you did recently purchase a vehicle, ensure your dealer gets you the paperwork in time because if they don't you could pay extra interest and penalties.

Ha ha ha, gotta love it, it would be in the interest of those taxing to delay the process as much as possible... Perhaps through the taxes with penalties and interest they can get their hands on all of the $4500 given for your clunker?

You really have to do some homework if you plan a major transaction. The information was available a long time ago and was by no means secret:

www.autonews.com...

I don't see why anybody would be upset.

Originally posted by buddhasystem
You really have to do some homework if you plan a major transaction. The information was available a long time ago and was by no means secret:

www.autonews.com...

I don't see why anybody would be upset.

If you remember:

The government tells us everything! they wouldnt lie to us or leave out important information!!!

P.s. Im not being sarcastic at you, just angry with the usual.

Wonders never cease, knew there had to be some kind of glitch to the

cash for clunkers program........aside of the problems car dealerships

will have collecting the money from the already broke government,

what a joke......imo.

reply to post by Tentickles


There's no such thing as a free ride

suckers!

Originally posted by truth/seeker
Wonders never cease, knew there had to be some kind of glitch to the

cash for clunkers program........aside of the problems car dealerships

will have collecting the money from the already broke government,

what a joke......imo.

Still no news on the payout for the program to the dealers. I'm keeping an eye out for that part.

I suspect many problems and complaints.

Not surprizing at all.

They sell you lottery tickets with tax built into them. When someone wins they tax you at the highest rate.
Crooks.

reply to post by Tentickles


We libertarians and conservatives shouldn't complain!!

Taxes are good. Taxes generate growth. Therefore we should increase taxes to pay for all the great services government bestows on us.

Remember the "Children"!!!- the cry of the leftist making his case for more and more taxes.

[edit on 25-8-2009 by Gateway]

That really sucks. So, call it incomes and you fine folks that participated can look forward to about 1300 bucks worth of income tax...well...unless of course you are unemployed, 'no speeky eengliss' and have 14 dependents...you'll still get the same fat check you always do. Party on.

Ok, I am a little lost here. We are talking sales and use tax, yeah? That really doesn't surprise me, if that is the case.. here is why. Basically, your "clunker" is being used as a government sponsored down payment. when you make a down payment on a car, that doesn't reduce the sales price of the car, just the amount you have to finance.

If this is an Income Tax, that would be differant, but I don't remember ever paying my income tax at a local tax office.

The real scam about the Cash for Clunkers program is that it is getting people who currently do NOT have car payments to go into debt.

[edit on 8-25-2009 by rogerstigers]

Originally posted by Tentickles
Still no news on the payout for the program to the dealers. I'm keeping an eye out for that part.

I suspect many problems and complaints.

In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been "rejected for minor oversight."

Cash for Clunkers Auto Dealers Paid


[edit on 25-8-2009 by IKnowNothing]