Shell Game
Get a tax break—get your legs broke:
A report published by the Treasury Department’s inspector general for tax administration yesterday concluded that over 15 million Americans may owe the IRS for the tax credit they received as part of the recovery (that wasn’t) plan. According to Yahoo News:
More than 15 million taxpayers may owe the government $250 or more because of how the IRS last spring set up President Barack Obama’s tax break that was designed to help consumers spend the U.S. economy out of recession. Individuals with more than one job and married couples in which both spouses work may have to repay the government $400, either through a smaller tax refund or a larger tax bill.
On top of that, roughly “65,000 taxpayers could technically face penalties for underpaying their taxes in 2009.”
Don’t forget Cash for Clunkers. You’ll owe taxes on the $3,500 or $4,500 dollars you got there. too.
Obanomics means that if the recession doesn’t bankrupt you, the recovery will.
Bloodthirsty Liberal said,
November 17, 2009 @ 12:25 pm
BTL,
My understanding is that there is no tax on the Cash For Clunkers money. Are you sure?
- Aggie
Bloodthirsty Liberal said,
November 17, 2009 @ 1:04 pm
No federal tax, but some states treat it as income.
See here.
Somehow, the Massachusetts Department of Revenue missed this scam, so we don’t have to pay anything.
But residents of Arizona, Idaho, Nebraska, New Jersey, New York, Ohio, South Carolina, South Dakota, Virginia, and Washington do.
Bloodthirsty Liberal said,
November 17, 2009 @ 2:29 pm
So, let’s get this straight. A driver in Massachusetts doesn’t pay taxes on the $4500 freebie, and also doesn’t pay federal taxes? SWEET!
- Aggie
Carol said,
November 17, 2009 @ 8:33 pm
Aggie, Shhhhhhhhhhhh. It ain’t over ’til it’s over, and as I recall, in one very early move, Bill Clinton and his Dem Congress managed to increase taxes retroactively on dead people. You think you’re special just because you’re alive?
Bloodthirsty Liberal said,
November 17, 2009 @ 8:57 pm
Did they really raise taxes on dead people? I am impressed!
- Aggie
Carol said,
November 18, 2009 @ 8:16 am
Yes, and it was retroactive. I distinctly remember Rush announcing every day that it was, for example, “Day 135 of American Held Hostage for the living, and Day 394 for the (something) and the dead.”
There was some other tax besides the estate tax that they increased retroactively, but I can’t remember what it was.