Dan Riehl has it:
Clicking back a few links from an original tip from Snapped Shot on the Cash for Clunkers Program:
Here’s a new twist to both stories that you probably aren’t aware of yet:
The $4,500 rebate you “got” from the government was actually taxed both as income and as a purchase?
Even that may not be the end of people’s problems.
So here’s how that works: you pay taxes on your hard-earned income, which are spent on a wasteful handout, which is then taxed as both income and a purchase. Then the car dealers have to pay their business and income taxes on top of that.
And that’s what liberals call “creating wealth.”