Junking a car promotes economic growth and can leave people with a hefty tax deduction.
New Jersey (PRWEB) April 05, 2012
A majority of economists have reached a consensus recently that the United States is slowly but surely pushing out of recession and into the type of sustained growth that citizens have been used to in recent years. While real economic growth during the recession never reached into negative numbers, prospects haven’t looked good. Still, the current numbers are very optimistic. The projected economic growth for the United States in 2012 is 2.7-3%, which is close to what it was the year before, and suspected to be what it will be the year after. Unemployment is relaxing as well, which means people will be making and spending money again, just like before the recession.
With tax season coming up in just a month it might be more important than ever to take advantage of any potential tax deductions or credits that might help people save money. Tax credits and tax deductions are both rather simple concepts, but people occasionally confuse themselves by thinking they are synonyms of each other. Tax credits are very simple: they decrease the money someone has to pay by a real amount. That is, if someone has to pay 1000$, a 500$ tax credit will reduce this by half. A tax deduction, on the other hand, reduces the amount that is taxable. If someone has 20,000$, a 500$ tax deduction will reduce this to 19,500$, leaving the deducted 500$ untaxable. By taking advantage of tax deductions people can help promote economic growth simply by giving themselves more money to spend. This is a type of Keynesian economics, and it is actively promoted by the Federal Government for individuals and businesses who wish to deduct money from their taxes based on expenses related to work or charities they participate in.
One easy way to simultaneously promote economic growth and save money during tax season is to junk a car. Having an old junk car is a financial burden, and many junk car yards are happy to pay people to take these broken vehicles off their hands. Once junked, much of the proceeds are given to charities, so the junk car yard is eligible to receive tax deductibles, many of which are passed on to the seller of the junk car as an added incentive. It is, however, important to ensure one isn’t dealing with a shady junk car yard, as many of them are happy to cheat people when they buy junk cars. Many of them are also willing to lie about where their proceeds go, and the tax deductions they offer might simply be a fraudulent enticement.
Before contacting a junk car removal service it is important to read information on how to junk a car to become familiar with the process and to ensure the company doesn’t engage in shady business practices. Cash 4 Junk Cars NJ is regarded as an honest, reliable junk car buyer in Northern NJ who not only offers tax deductions, but free towing as well. Cash 4 Junk Cars NJ doesn’t lie about their charity work like so many companies are known to do; they actively participate in a Jewish youth charity which promotes education for children in need. Participating in economic growth can sometimes be a sacrifice, but it’s definitely more of a sacrifice to keep around an old junk car that soaks up insurance payments and doesn’t get any use. It is worth it to contact Cash 4 Junk Cars NJ to see what people can do with their old, useless, or broken down car.