I don't know if any of you participated in the so-called "Cash For Clunkers" program, but if you or a loved one did so, you may want to make a note: now that the program is over the IRS has informed us that the $4500 credit received toward a new car is considered taxable income.
In other words, if you are in the lowest tax bracket, you would owe the IRS and extra $675 next April 15th. And if you are in the middle tax bracket (28%), you would owe Uncle Sam an extra $1,260 in taxes come tax time. Most folks were not aware of this, and will be dismayed to find this out.
And now Congress wants a "Cash for Clunker Refridgerators" program. Not sure what's next - maybe "Cash For Computers", but more likely a "Cash For Guns" program. In any case, watch out for the extra taxes that will be owed.
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We, as the United States, I feel have a corrupt Government system. How can we have a National debt? They print money and either give it away to other countries or flood the system with it in hopes it will pull the country out of a depression. If they look at the big picture they might see if they would stop throwing more money in the system and creating higher and higher and higher taxes by it that the American people would have the extra cash to spend on luxury items such as cars, or personal computers, or bigger and better housing, or anything for that matter outside of the daily food, water, and clothes we need.
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