[webschooner]

Hell, the short short list would be “What isn’t taxable?”

[tflabo]

When they start taxing tax itself you know it’s full bore FUBAR.

[CharlesWayneCT]

I would be surprised if any state would call the $4500 “income tax”.

But because the car costs $4500 more, not only do they pay sales tax, they also pay more in property tax if they live in a personal property tax state.

[LiberConservative]

Ha! HA!

[nascarnation]

your post is correct, but in a Clintonian way
it may be taxable at the state level, it’s definitely NOT taxable as federal income tax:

http://www.cars.gov/faq#category-01

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.

[cotton1706]

So in addition to the car payment on the brand new car, including the sales tax on the brand new car (assuming there’s sales tax), there’s a tax on the receipt of the $4500 as income.

What a deal!! Sign me up, Government. Industry and frugality are the ways to wealth. Government schemes are not.

[hadaclueonce]

buying stock in rope futures..

[Raycpa]

Subject to sales tax but not income tax.

[wafflehouse]

out of all the massive amount of stupidity contained in the CfC program, people are only now getting pissed off because its taxable? THIS is why we keep electing stupid legislators. people still arent paying attention.

[pepperdog]

I can’t help but laugh, the ever generous govt strikes again. They just never disappoint.

[RockyMtnMan]

So to clarify the $9000 (in taxpayer money) per car the government payed under this program ($4500 in admin fees) will be partially reclaimed in taxes. Tax revenue which goes to fund the highly inefficient IRS and then wasted by the treasury on other programs similar to “Cash for Clunkers”. WOW what a scam the Fed has going.

[BenLurkin]

[Salvation]

LOL! The people who offered and took advantage of this program really weren’t thinking, were they?

[Reagan is King]

I heard on the radio today that a lot of people are already regretting their decision to buy into the "Clunkers" program. They now have car payment (again!), higher insurance, and that new car smell is wearing off fast. On top of that they were taxed on their "rebate"!

Suckered in by Barry Hussein one more time...

[Revel]

In the closed thread it says something about fixing this.

Personally I think that anyone who used this program is a socialist and should be taxed to the hills. I am not happy to have anything to do with buying them a car. They will have some of the blood of the fall of the economic system on their hands.

[SuperLuminal]

Anybody who thought it would be otherwise is the walking example of the morons who think government deathcare will offer choices and reduce costs!

[GOPJ]

So you get nailed at least once and possibly twice. Specifically, you pay sales tax on the full vehicle price (effectively paying sales tax on the $4,500!) and what's worse those states that tax income (that would be most of them!) might wind up counting this as income for state income tax purposes too, effectively taxing you twice.

Do you have to claim it as income on your federal tax return too?