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Posted: 8:34 a.m. Thursday, Aug. 27, 2009

BUY A CLUNKER? NOW HAND OVER YOUR TAX DOLLARS 

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By Neal Boortz

People who purchased cars recently under this cash for clunkers program may find out a little something they weren't expecting: that $4,500 rebate from the government taxpayers is taxable.

Not only are you taxed once, but this blogger points out that depending on which state you live in, you could be taxed twice on clunker rebates. "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."

Even when the government tries to kiss you, it is just a prelude to a good screwing.

 
 

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