The Wall Street Journal has a piece on how Obama’s federal electric car stimulus has been used to boost the sales of golf carts:
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.
And since there is apparently no limit on how many cars can be bought by an individual with this stimulus, some are stocking up on free carts for resale later. Others have figured out how to turn the electric car loophole into instant cash through a buy and leaseback arrangement.
Its just one more example of the unforseen consequences that nearly always occur when the government attempts to manipulate the market.
Imagine how bad it will be when the feds take over health care—amounting to one sixth of the national economy.
Thanks to John, editor of Grays on Trays for the tip.