Watching GMA (Good Morning America) on ABC this morning, as terrible as that program is, I was stuck there as I am home with my kids and wife who are sick, HOPEFULLY NOT WITH THE PANDEMIC SWINE FLU, which is another topic in itself. Anyhow, they did a story on this Obama administration stimulus package where people can get up to $5,500 toward the purchase of a golf cart, which can cost between $8,000 and $10,000. Some golf cart businesses are offering deals where a consumer can purchase a golf cart and then lease it back to them so they end up making $2000 by the end of the lease term, including the lease payments and the government credit.
What a deal!
You would think George W would have thought of this, being that he is a white guy who plays golf, but NO, leave it to the current genius administration to come up with this one. Did you hear about why the cash for clunkers program didnt include older cars being that the auto parts lobbyists threatened lawsuits. Oh, sorry, so many idiotic stories, I cant stay focused. Back to the golf cart story.
The worst part, Diane Sawyer and company chuckled at the story. One person said, I never thought of buying one of these but with this kind of deal, how could I pass it up. I guess I cant blame the guy for taking advantage of the governments stupidity in this down economy but then again, ITS OUR TAX MONEY!! I would much rather spend that money on defense or on protective gear for our troops than so Billy Bob can drive a golf cart down to the Jiffy store when he needs cigarettes. Oh, but dont worry, Billy Bob doesnt have insurance for his lung cancer caused by his 2 pack a day habit and lack of excercise from riding everywhere in a golf cart but the new health care plan we will be funding for him soon will cover him. Whew, but I digress yet again.
Back to the main story. It gets even better. The plan calls these high-tech golf carts, LSV’s or Low Speed Vehicles. Good thing. Then no one will realize that they are actually buying a GOLF CART!
The golf-cart boom has followed an IRS ruling that golf carts qualify for the electric-car credit as long as they are also road worthy. These qualifying golf carts are essentially the same as normal golf carts save for adding some safety features, such as side and rearview mirrors and three-point seat belts. They typically can go 15 to 25 miles per hour.
In South Carolina, sales of these carts have been soaring as dealerships alert customers to Uncle Sam’s giveaway. “The Golf Cart Man” in the Villages of Lady Lake, Florida is running a banner online ad that declares: “GET A FREE GOLF CART. Or make $2,000 doing absolutely nothing!”
Golf Cart Man is referring to his offer in which you can buy the cart for $8,000, get a $5,300 tax credit off your 2009 income tax, lease it back for $100 a month for 27 months, at which point Golf Cart Man will buy back the cart for $2,000. “This means you own a free Golf Cart or made $2,000 cash doing absolutely nothing!!!” You can’t blame a guy for exploiting loopholes that Congress offers.
The IRS has also ruled that there’s no limit to how many electric cars an individual can buy, so some enterprising profiteers are stocking up on multiple carts while the federal credit lasts, in order to resell them at a profit later. We should note that some states, such as Oklahoma, have caught on to the giveaway and are debating whether to cancel or limit their state credits. But in Congress they’re still on the driving range.
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.