Like anyone is actually surprised by this.
Prisoners, dead people and children qualified for a 2009 tax break to spur car buying, according to a U.S. report on Wednesday that criticized the Internal Revenue Service for misapplying the refund in some cases.
The IRS should have done more to verify that people who claimed the qualified motor vehicle (QMV) deduction were entitled to it, said the report from the Treasury Inspector General for Tax Administration, a government-run IRS watchdog.
The measure, which expired on December 31, 2009, was part of the Obama administration’s economic stimulus package.
Taxpayers who claimed the deduction were not required to provide independent proof that they bought a vehicle, or if they did, how much they paid in deductible sales and excise taxes, said the inspector general.
I bought a car in 2009. I got to deduct the sales taxes that I paid on the car. If you itemize, then you are allowed to deduct anyway. The law just provided the deduction for anyone filing their taxes, not just those that itemize. It wasn’t like I got a “Tax Break.” I still had to pay taxes, just not as much.
Breaking news people lie on their tax returns!! Why would the IRS provide any more scrutiny for this deduction than any other?
I remember back in the 80s when you had to start providing a social security number if you claimed you had a kid. The year after the requirement went into effect they IRS said several million kids disappeared. Guess what people were doing before that social security number requirement – yep you got it just making up kids.
This just points how any Government “incentive”, better called social engineering always turns wasteful and abused. They should all be banned, for individuals and companies. No deductions no incentives no “do what we think is good and you’ll benefit monetarily”.
This plays out like a scene from the movie “Dave” where he cuts an item from the budget that was supposed help people feel better about the car they bought. And people wonder why we have a budget deficit.
Um, I thought that if they knew where you lived they could figure out what the price would be on a car sold for X amount of money?
474 prisoners out of 4.3 million participants. And, now they are caught. If you read the article, the level of fraud seems very low.
A revived auto industry with many saved jobs and revived supply chain seems well worth the price.
The conservative were cheering for a failed American auto industry, so now they are sour grapes.
>> Thomas said, on June 8th, 2011 at 11:31 am
>> And people wonder why we have a budget deficit.
Reagan tax cuts.
Bush tax cuts.
Two unfunded wars.
Bush’s crashed economy.
There you have the vast majority of it. This car incentive is minuscule compared to the above.
I just love people who brag about the lesser of two evils being a good thing.
Sheesh . . .
#8
Not even close. Take the deficit from every item listed combined and it does not equal what Obama has done in three years.
The car incentive is money pissed away. It is indicative of wasteful spending.
Money is worthless anyway. Required reading: http://atimes.com/atimes/Global_Economy/MF07Dj02.html
People cheat and lie on their Income(!) Tax !
I’m shocked.
I believe the only thing the government should provide me is a standing army to protect the country, and a system to elect representatives and a President. That’s all I want them to do.
I don’t want roads, EPA, blah, blah.
A most amazing story
I wonder how the guy proved delivery of the new vehicle let alone proved he had a driver’s license to accept the new car
Then again the whole stimulus package was fraudulent alone with a society of civil servants putting in time – making charts and graphs going to the sky while rearranging deck chairs on the Titanic
Did you really expect anything else ?
#11, That was an interesting article. I’ve heard a lot of the different statements put forth in that article before but I’ve never seen them all tied together.
Thanks for sharing.
#15, Guyver,
Good points. For a one sided view.
If you want America to succeed, it takes more then enriching the uberwealthy. There were not just the UAW jobs, there were even more supplier jobs saved. Even the union jobs were held by Americans, in America. But I guess they don’t count.
Yes, the Democrats got some good legislation through Congress. Now, the Republicans want to dismantle it. Why? Because it interferes with their supporters; the large corporations and uberwealthy to make more money.
Why do you hate America?
You’ve definitely got a one-sided view.
Putting things into perspective, the Democrats refused to pass a budget last year for fear of voter wrath.
But sure, blame the Republicans for “dismantling” things even though the Democrats in last year’s Congress couldn’t grow a pair to pass a budget. The Democrats had a majority and couldn’t pass a budget because they were spineless and worried about staying in office.
At the end of the day, liberals don’t take responsibilities for their own actions and just like to play the blame game. The current president and remaining Democrats seem to be no exception.