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Golf Carts: Obama Taketh With The Right Hand And Giveth With The Left
By Jeff Harding
The Daily Capitalist
Check out this report on the Obama Administration's latest gift: free golf cart! This is from the Wall Street Journal. I really can't add much to this.
We thought cash for clunkers was the ultimate waste of taxpayer money, but as usual we were too optimistic. Thanks to the federal tax credit to buy high-mileage cars that was part of President Obama's stimulus plan, Uncle Sam is now paying Americans to buy that great necessity of modern life, the golf cart.
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?"
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.
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For all the posters that are bashing Obama for this credit. This credit was given before his administration took office. See http://cmlawlibraryblog.classcaster.org/blog/law-zarro/2009/10/22/federa....
Also, see the actual IRS ruling that excludes golf carts: http://www.irs.gov/irb/2009-26_IRB/ar07.html
It just keeps getting better. Fat ass Americans driving around in golf carts while the country burns.
Wow they are so in tune with the needs of the people. It's not like they are totally fake divorced from any empathy or sympathy over the people they lead sociopaths. It's not like that at ALL.
This story is based on a completely false premise that these vehicles are golf carts or very close to them. Golf carts cannot qualify for the tax credit. These low speed vehicles are manufactured to a completely different standard established by NHTSA and cost two to three times the cost of a golf cart. If the policy is designed to reduce pollution, reduce the use of foreign oil and promote US manufacturing then it is accomplishing these goals. Most of these vehicles replace a families second car - usually a full-size, gas powered vehicle and the number one manufacturer is in the US. The vehicles are now being purchased by the thousands by the US Armed forces because they reduce their fuel consumption and lower operational costs.
"Most of these vehicles replace a families second car - usually a full-size, gas powered vehicle and the number one manufacturer is in the US."
Does replacing a gas powered vehicle with a coal powered vehicle reduce pollution? The primary fuel to generate electricity in the U.S. is coal (48.5% of fuel mix). According to environmentalists, coal is the worst of the fossil fuels. And delivering coal energy over hundreds of miles of electrical power lines where energy is lost during transmission is not efficient.
"The vehicles are now being purchased by the thousands by the US Armed forces because they reduce their fuel consumption and lower operational costs."
The Armed Forces and all government agencies are under executive orders to reduce consumption of fossil fuel use each year. In the federal government's shell game of accounting, an electric vehicle is "green energy". The electric vehicle may actually increase burning of coal and wasteful transmission of coal energy. It is simply a government mandate requiring federal agencies to reduce fossil energy use; it is not a "free will, rational" choice by the agency. The agencies have no choice but to reduce fossil fuel use, or more properly, give the appearance of reducing fossil fuel by claiming electric cars are green energy.
"Most of these vehicles replace a families second car"
How do these electric cars compare with the families second car in regard to the family's safety?
"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 the coming months these "carts" should come in handy "carting" off the massive piles of dead supporters who thought they could just "vote" their way to prosperity only to completely starve to death in the streets waiting for their "hero" to come to the rescue.
http://www.teslamotors.com/
At Top of The World or Sun City, maybe this is all you need. Look at EzGo's "pedal start" model - gives you just enough exercise. Might be able to drive it right into the kitchen - no more hauling beer from the SUV trunk. However, concerns: 1. Where's the air conditioner? 2.Where's the GPS for when I get lost? 3. Where's the back seat for recreation?
Textron is getting crushed from their exposure in their golf lending markets. They are not quoting new golf course deals, which is a classic mistake for troubled lenders. They could be doing incredible and profitable golf course deals, but their focus is on their existing portfolio.
On a side note, who regulates Textron Financial?
Only an ignorant reactionary would blindly and genericly label all electric vehicles "golf carts". Only a fool would blindly take an ignorant reactionary at his word without investigating.
My compliments to nearly all of the commentors here! The level of intelligence and understanding by the comments posts (that this loophole was unintentional) points up why I enjoy ZH. Other blog sites and comments thereon would lead one to believe that this was specific legislation to get free golf carts alone -- for the legislators' cronies alone. Most legislation has a bit of unintended consequences. One could argue the original legislation, of course, but keeping the focus on the humor points up the generally high level of intelligence of the ZH reader and the comments.
These idiots don't seem to understand that the electricity must come from somewhere.
We are merely pushing our pollution off on someone else in an effort to clear our collective conscience.
That said, here is my xmas list:
http://www.deere.com/en_US/ProductCatalog/GT/series/gt_gator_te_series.html
The electricity comes out of a little hole in the wall. That's all you need to know...move along.
Amazing. Put doors on em and you got a SMART car.
"cinderella story, out of nowhere, about to become Masters champion"
None of the current big three golf cart makers (EZGO, Club Car, Yamaha) make a cart that qualifies for the tax brake. The low-speed vehicles that qualify can not be driven on a golf course. To meet the requirements you must have seat belts, lights, turn signals and most safety items that are on a car. The price for most low-speed vehicles that qualify for the tax break start a $12,500 and up. Learn more about golf carts http://www.golfcarthotrod.com/
lol....party pooper
Can you drive a Prius with the trunk open on private and daily fee cart paths?
Oklahoman here....and I have a handful of close friends that have taken advantage of this little "loophole". I don't blame them but the tax credit is a absolute joke. The Oklahoma Tax Commission tried to re-nig on their side of the deal but failed to get a favorable ruling last month. So where are we at now?????
Nearing 10% unemployment.
A golfcart in the garage paid for by Uncle Sam.
105% LTV on a new home...downpayment paid for by the homebuyer tax credit but damn those closing costs!!!
$750/month for two 10year car loans after cash for clunkers helped pay for the downpayment on a couple of hybrids that save the average family $20/month!!!!
But savings are going up guys! Surely that's going right into the bank. Not to service the average 20K in credit cards outstanding per household. "service defined as making the minimum payments"
Unemployment benefits ending but luckily Uncle Sam's going to help me out there too through a probable extension
Oklahoman here....and I have a handful of close friends that have taken advantage of this little "loophole". I don't blame them but the tax credit is a absolute joke. The Oklahoma Tax Commission tried to re-nig on their side of the deal but failed to get a favorable ruling last month. So where are we at now?????
Nearing 10% unemployment.
A golfcart in the garage paid for by Uncle Sam.
105% LTV on a new home...downpayment paid for by the homebuyer tax credit but damn those closing costs!!!
$750/month for two 10year car loans after cash for clunkers helped pay for the downpayment on a couple of hybrids that save the average family $20/month!!!!
But savings are going up guys! Surely that's going right into the bank. Not to service the average 20K in credit cards outstanding per household. "service defined as making the minimum payments"
Unemployment benefits ending but luckily Uncle Sam's going to help me out there too through a probable extension
The largest manufacturer of electric golf carts?
Textron subsidiary I believe.
Looks like GS upgrade to Textron last month was a good call!
to move the needle at TXT, they'll have to have $20MM tax credits for Citation Jets. They'll have 'em before the mid-term elections...
Vomit
Go long Textron.
E-Z-Go
1451 Marving Griffin Road
Augusta, GA 30906
Phone: 800.241.5855
Corporate Website: http://www.ezgo.com
Dealer Locator: http://www.ezgo.com/dealer_locat.html
Company Overview: E-Z-GO is the number one player in the Golf Cart industry. A subsidiary of the public company, Textron, E-Z-GO was first started in 1954. Today it’s developed a massive network of dealers throughout the world. E-Z-GO manufacturers everything from golf carts, utility vehicles, burden carriers to 4x4 utility vehicles and even carts manufactured for the clay pigeon enthusiast.
Does anyone know who in the House of Reprehensibles or U.S. Spendate sponsored this golf-cart fiasco?
Caddies are so screwed.
Our true leaders have passed on
http://www.youtube.com/watch?v=W3A9rLoz_0o
lol :-)
Speechless in Minnesota...
Minnesota loves this guy and voted for him in big numbers.
Rebates for golf carts, 4 year olds getting rebates for first time home buyers, etc is the kind of goverment liberals love.
Death cars...where's Nader?
Acorn town cars...
The new Acorn mobile...
Cash for duffers?
"If this keeps up, it'll soon make more sense to retire and play golf than work for living."
Best idea I've heard all day. Thanks Uncle Barry.
Retire!?
They don't get it. The hood hustler is in office now. You need to find your inner disability and bring it forward. That and a ambulance chasing SSI disability lawyer will keep you in high cotton, if you know what I mean....
Been working for at least 5 years? Does your pain prevent you from working? Go now. Get that golf cart! Live the dream, the real dream.