Ca$h for $ucker$ Program

[Captain Awesome]

I just read that the amazing successful program counts as regular income and will be TAXED!!!!

LOLOLOLOLOLOLOLOL!!!!

[Mr. Wyndham]

well...those $ucker$ are still making out on the deal

[Captain Awesome]

Originally Posted by Dragoneye

well...those $ucker$ are still making out on the deal

Show me the math that you used to come up with this response, please.

[SSOOCH]

Yeah. Cash for Clunkers was a horrible idea. Let's help the economy, let's help Americans get reliable cars and let's help the enviornment by getting gas guzzlers off the roads and replace them with more fuel efficient cars. Oh wow...people kill me....

[Mr. Wyndham]

Originally Posted by Captain Awesome

Show me the math that you used to come up with this response, please.

Um...because even if they tax it at an unfathomable 50%, the purchaser just got free money to go buy a car. I didn't do any math.

[Captain Awesome]

Originally Posted by SSOOCH

Yeah. Cash for Clunkers was a horrible idea. Let's help the economy, let's help Americans get reliable cars and let's help the enviornment by getting gas guzzlers off the roads and replace them with more fuel efficient cars. Oh wow...people kill me....

The ironic thing is that the sentence in your post you meant as a facetious joke is the only part that turned out to be true. You were right about it being a horrible idea.

[Captain Awesome]

Originally Posted by Dragoneye

Um...because even if they tax it at an unfathomable 50%, the purchaser just got free money to go buy a car. I didn't do any math.

Ummm.... you were aware that the majority of people who just got "free money" were blissfully unaware that it will be taxed as this was not widely reported. Come next April they will get a "Free Pickpocket" of money they may not actually HAVE at that time. Who knows, they may have to skip a few payments to pay their taxes and lose the car. Then they will have to go out and find a decent USED car that will be harder to get because most of them got CRUSHED and the rest of them everyone is reluctant to sell because they are hoping for the next brilliant clunker bill to come along.

PLUS...

Remember for a moment that if they got $4500 for a car that WAS worth $3000 in trade a few weeks ago and they get taxed 50% on that car then they wind up getting $2250 for their $3000 car.

Sweet deal.

[Mr. Wyndham]

They still got free money....

...and no. I don't like the tactless "oh and by the way..." style they tell people about it, nor the fact that they're doing it at all...speaking of which...do you have a link to a story or something? Just curious, I'd like to read more.

[Captain Awesome]

Originally Posted by Dragoneye

They still got free money....

...and no. I don't like the tactless "oh and by the way..." style they tell people about it, nor the fact that they're doing it at all...speaking of which...do you have a link to a story or something? Just curious, I'd like to read more.

http://www.businessinsider.com/whoop...t-taxed-2009-8

[ss.yes!]

http://www.associatedcontent.com/art...mor.html?cat=3

False rumor. The $4500 does not count as taxable income for the consumer.

[Parker]

You're paying the sales tax on the credit used to buy the car. This what I'm getting from this.

I buy a $22,000 Camaro LS and use a 3,500 CARS credit. So I pay 18,500, but have to pay the sales tax on the full purchase price.

So I'd be paying 324 dollars more in sales tax than if the car was taxed at $18,500. (9.25% sales tax for me)

Not really as big deal as everyone is making it out to be. Also the majority of the clunkers aren't worth more than 1500. Theres a few nice cars in the mix, but most are; unreliable, dirty, leaking, smelly, torn, oxidized, oil burning, eyesores that needed a good crushing.

If I had a 93 Aerostar that smelled like a locker room I'd probably take 3500 or 4500 minus 9%. Better than next to nothing.

Also if I was buying the car without the credit I would have to pay full sales tax anyways.

[ss.yes!]

Originally Posted by Parker

You're paying the sales tax on the credit used to buy the car. This what I'm getting from this.

I buy a $22,000 Camaro LS and use a 3,500 CARS credit. So I pay 18,500, but have to pay the sales tax on the full purchase price.

So I'd be paying 324 dollars more in sales tax than if the car was taxed at $18,500. (9.25% sales tax for me)

Not really as big deal as everyone is making it out to be. Also the majority of the clunkers aren't worth more than 1500. Theres a few nice cars in the mix, but most are; unreliable, dirty, leaking, smelly, torn, oxidized, oil burning, eyesores that needed a good crushing.

If I had a 93 Aerostar that smelled like a locker room I'd probably take 3500 or 4500 minus 9%. Better than next to nothing.

Also if I was buying the car without the credit I would have to pay full sales tax anyways.

Your understanding is spot on as far as I can tell. But it depends on the state, some assess sales tax based on the pre-rebate sales price, some on the price after rebate. In any case it does not "count as regular income" for income tax purposes as implied in OP. Furthermore, for most new cars purchased this year, the full amount of sales tax paid is tax-deductible even without itemizing, further bringing down the total tax paid for most new-car buyers.

[kevin2323]

Originally Posted by Captain Awesome

Ummm.... you were aware that the majority of people who just got "free money" were blissfully unaware that it will be taxed as this was not widely reported. Come next April they will get a "Free Pickpocket" of money they may not actually HAVE at that time. Who knows, they may have to skip a few payments to pay their taxes and lose the car. Then they will have to go out and find a decent USED car that will be harder to get because most of them got CRUSHED and the rest of them everyone is reluctant to sell because they are hoping for the next brilliant clunker bill to come along.

PLUS...

Remember for a moment that if they got $4500 for a car that WAS worth $3000 in trade a few weeks ago and they get taxed 50% on that car then they wind up getting $2250 for their $3000 car.

Sweet deal.

if your stupid enough to use the program if you cant afford to pay a tax on 4500$ then you deserve to be in debt.



your point is only valid to idiotic people who dont have common sense.

[PQ]

Have the Feds started paying more of the money yet. We had one used car dealer here go out of business. They got to caught up in the deal and ran ALL of their operating capital and cash flow down to zero. There were others who stopped offering it. Only the biggest dealers could offer the damn thing.