When the government decided to redistribute up to $4,500 of taxpayers’ wealth to people who drive old cars, the owners of the “clunkers” jumped at the chance to get their cut. And why not? It’s free money.
Not so fast. You suckers should know by now that what one government giveth, another government taketh away.
Uncle Sam agreed to give your dealer cash so you could get that big discount on your car, but Aunt Virginia is going to take her cut from you by taxing that cash discount as income. And if your dealer doesn’t get you all of the proper paperwork in time, you’ll be paying interest and penalties, too.
Enjoy the ride.
[Cross-posted at The Enlightened Redneck]