There can be fraud in any government program. But we noticed an especially troubling report by the Treasury Department’s inspector general. It found tens of millions of dollars in improperly claimed tax credits for electric vehicles in 2010.
Prison inmates and IRS employees were among those who wrongly claimed credits, the report found. The credits — some reaching an astonishing $7,500 — are part of the president’s attempt to promote electric cars.
The report said some people claimed a credit for vehicles such as the Cadillac Escalade and the Hummer H3 — oh, and a golf cart!
Prisoners improperly got about $50,000 worth of the credits.
The IRS says it will try to recover the money. But isn’t the likelihood of this kind of fraud a good reason why government should not be picking winners and losers in the economy by subsidizing this or that part of the auto industry — or any industry?