Steve Newton over at Delaware Libertarian posted a piece on Cash for Clunkers providing a link suggesting the Cash for Clunker rebates are taxable income. One little detail that the Feds neglected to advertise in Cash for Clunkers–the rebates are taxable income If all true it’s going to be one hell of surprise at tax time.
Steve made reference to Kilroy re: unemployment. Unemployment benefits are taxable income and has been for a long time. However, Obama added $25.00 a week federal stimulus money the state unemployment compensation and that amount is also taxable income.
Here’s another way the government sticks it to you! Nine years ago my mother passed away and I was the executorof her estate. She (her estate) had credit card debt however, my mother paid a premium each month against the balance for credit card life insurance . I sent a copy of her death certificate to the credit card company and sure enough debt was covered. However, I received a tax form ( I forget the tax-form number ) that indicated I( the estate) had to claim the amount of debt the card company written off as “forgiveness of debt”. I was like, stop the presses, this was paid through life insurance and life insurance payouts is not subjected to income tax. No one forgave my mother’s debt as she had credit life insurance protection.
If those Americans who took Uncle Sam’s offer re: Cash for Clunkers has to pay taxes of money used via the federal stimulus program don’t you think the banks and auto makers who received the federal bailout should pay taxes on that income? As far as I know, the banks and auto industry don’t even have to pay interest.
Those in government suggesting that employees pay taxes on employer provided healthcare are nuts!
Wasn’t the American Revolutionary War about rebelling againstthe ruling British government’s high taxation? Perhaps those Tax Party folks ought to set up camp for homeless people at Valley Forge. I can see it now, people being arrested for trespassing on federal property . That property belongs to the American people not the government.