So, you ready to trade in your clunker. The federal government’s program gives you money – tax free – when you sign on the dotted line. Because it is your money, after all.
Car dealers also get money on your deal from the federal government (to lower the price of the new vehicle) but they have to pay taxes on it as part of their business’ income (probably will be considered part of the customer’s cash down payment).
Wouldn’t it have made more sense and everyone’s life easier if the feds had just lowered the amount given to the car dealers and left it at that? Isn’t that money – given to the government by paying business taxes – their money, after all?
Why do we have to spend the time and resources to amend the already labrynthian tax code for one little “stimulation”?
Oh, wait.
Federal job security.