Free Electric Car If You Owe A Bit In Taxes

This was just shared with me this morning and might prove interesting to some of you out there. If you live in the US and have a tax liability of over $6000, you can effectively get a free electric car ... well, a street legal golf cart. I say effectively because you will likely still need to pay shipping and you have to front the money while you wait for Uncle Sam to get you your rebate.

The person who shared this with me has already vetted it with his accountant so it at least seems legitimate to some. However, if you are interested in it, I would think it to be tremendously wise to have your own accountant/tax lawyer evaluate it with respect to your specific situation. Anyway, should you be interested you can look into the details about the free electric car along with related IRS publications at http://www.freeelectriccar.com/shopcontent.asp?type=tax%20credits.

And as a quick aside, I have concerns about programs like this. Perhaps there is an argument that it is stimulating the economy by encouraging the purchase of electric cars. However, it helps to create an artificial demand for an item that is now going to be priced, not on value, but on the ability to qualify for the government rebate. The rebate is for $6496.53 so the cost of the vehicle floats at or just above this number. But what if the real value is less than that? Now the government is creating a a bubble that could have negative consequences down the line - will the government feel inclined to bail out the manufacturers who overextend themselves to keep up with the artificial demand and then suddenly find themselves in a slump when the program ends?

Why not just not tax us not so much in the first place and then give us the opportunity to decide the value of our money and the objects of our desire? Support the Fair Tax if you think that you are responsible enough to decide how to spend your own money.

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Timothy Farrar's Gravatar Yes! I would sooo love to see the fair tax implimented! Sure we would pay a higher sales tax up front, but the government wouldn't need to tax money every time it changed hands! It would stimulate the economy, because earning money wouldn't have that negative consequence of loosing part of it to taxes. In fact... with the higher sales tax, people would spend slower, and thus probably save some instead... which would lead to our country being a savings based society rather than a debt based society which would help to aleviate the need for things like the bailouts, or stimulus packages, which apparently don't help much, and really only put us, the tax payer into more and more debt to the government.
# Posted By Timothy Farrar | 12/24/09 10:11 AM
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