Monday, October 19, 2009

Obamenomics in Action: The Golf Cart Stimulus

Seriously, it's in the Wall Street Journal.  After the IRS ruled that golf carts qualify as electric cars purchases of golf carts that are made road worthy through the addition of a few safety features qualify for tax deductions up to $5500 in addition to state credits available in several states.  This makes the purchase of golf carts nearly free to those willing to ride around in one:
The federal credit provides from $4,200 to $5,500 for the purchase of an electric vehicle, and when it is combined with similar incentive plans in many states the tax credits can pay for nearly the entire cost of a golf cart. Even in states that don't have their own tax rebate plans, the federal credit is generous enough to pay for half or even two-thirds of the average sticker price of a cart, which is typically in the range of $8,000 to $10,000. "The purchase of some models could be absolutely free," Roger Gaddis of Ada Electric Cars in Oklahoma said earlier this year. "Is that about the coolest thing you've ever heard?"
Jeepers no, it's not the coolest thing I have ever heard, but evidently there are plenty of folks who disagree with me.  In South Carolina one industrious salesman has put together a package where investors can actually come out of the purchase with a cool $2000 profit.  The Villages Golf Cart Man is promoting this golf cart bonanza on his website, where he offers quite a selection of custom golf carts for those who long for the gas guzzlers of days gone by:
the 2009 Escalade

The Hummer
Don't we already own GM or is that the Chinese?

There is no limit on the number of golf carts an individual can claim under current IRS rules though some states are seeking to limit the number as the free or nearly free golf carts are crippling their budgets.  As the WSJ points out this policy illustrates the absurdity of Democratic policies:
 This golf-cart fiasco perfectly illustrates tax policy in the age of Obama, when politicians dole out credits and loopholes for everything from plug-in cars to fuel efficient appliances, home insulation and vitamins. Democrats then insist that to pay for these absurdities they have no choice but to raise tax rates on other things—like work and investment—that aren't politically in vogue. If this keeps up, it'll soon make more sense to retire and play golf than work for living.
These are the people who are going to fix our health care system, heaven help us.   Can cash for livers be far behind?

H/T: Memeorandum

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