Changes to the tax credit is in the works

[Regularmache]

I don't believe in any electric subsidies. The lifetime CO2 of a hybrid Prius from production of all components and usage over 150,000 miles or 10 years is 18.5 Met/tons, a Tesla EV, is 21.9 Met/tons. Thomas edison, smart electric guy and friend of Henry Ford once counseled Henry Ford on whether he should swich to Electric propulsion. Here's how that went, "
Mr. Edison

"Young man, that’s the thing; you have it. Keep at it. Electric cars must keep near to power stations. The storage battery is too heavy. Steam cars won’t do, either, for they require a boiler and fire. Your car is self-contained—carries its own power plant—no fire, no boiler, no smoke and no steam. You have the thing. Keep at it."

Ford later appreciatively wrote:

"That bang on the table was worth worlds to me…. The man who knew most about electricity in the world had said that for the purpose my gas motor was better than any electric motor could be—it could go long distances, he said, and there would be stations to supply the cars with hydro-carbon. That was the first time I ever heard this term for liquid fuel. And this at a time when all the electrical engineers took it as an established fact that there could be nothing new and worthwhile that did not run by electricity. It was to be the universal power."

All things Electric was all the rage and considered to be the future, and Ford certainly was into efficiency, but coming from Edison, this was quite profound.

I believe market success, not government, (read the populaces money) is far better at picking winners or losers. Think is, the market competition forces innovation, not government subsidies.

so long answer, but you are correct, no country should muck up International trade with their favor poured on vehicles built inside their borders.

Sponsored

 

[jlauro]

Yea, but I think the union thing is the throw-away when negotiation time comes.

The tax credit is based on the taxes you paid. Unless they let you carry-over to the following year, a $10k credit is worthless to 90% of US households.

47% of US households pay no taxes, so even a $20,000 tax credit would be meaningless to them.

It's not worthless, it's just wouldn't be the full $10k. For example, those making $20k-25k a year typically pay an average of $994 taxes. About the only group I can think of that would likely purchase new instead of used and not have income taxes are those retired with a lot of pretaxed retirement investment.

This would help increase total sales of EV and increase supply on the used market, and lower resale value of used, which will be passed to those of lower income. So, it would not be meaningless to the 47%, but they would mainly see it in the used market and at a fraction of the original amount.

(actually where did you get the 47%? I think it's closer to 38% when I tried to fact check it but that number might be old)

 

[Larry]

Crazy yes. Sarcasm no. I want my free stuff and I’m not going to pretend otherwise.

I’d be fine with $50k vouchers redeemable with any EV manufacturer. That would kickstart the EV marketplace overnight.

 

[Larry]

I stand corrected. Make it an $100k voucher plus unlimited tax credit.

 

[Radish]

I don’t think there should be any EV tax credit. I find it hard to believe there is any universe in which buying rich people (or at the very least, very well off middle class folk) fancy cars is the best use for that money

 

[RedStallion]

Nothing voted on yet, but change (for the better) is in the air.

https://electrek.co/2021/05/27/electric-car-us-tax-credit-up-less-tesla-vehicles/

The proposed changes are:

1. Limiting the $7,500 tax credit to EVs with retail prices below $80k.
2. Eliminating the phase out for total EVs sold.
3. An additional $2,500 tax credit for EVs assembled in U.S.
4. An additional $2,500 tax credit for EVs assembled by union workers.

Oh my! Need to increase my inflation bets. With all that profligate spending inflation won't just go up, it will skyrocket.

 

[Larry]

Simple solution. Price controls.

 

[SONEWBE]

Yea, but I think the union thing is the throw-away when negotiation time comes.

The tax credit is based on the taxes you paid. Unless they let you carry-over to the following year, a $10k credit is worthless to 90% of US households.

47% of US households pay no taxes, so even a $20,000 tax credit would be meaningless to them.

You really need to do better research. In 2010, it was estimated that 47% of the US population doesn't pay federal income taxes. The majority of those are under 18 or senior citizens (live on social security). The majority of households pay taxes.

 

[timbop]

Agree that those making billions should not be able to write off all their tax liability.

For example:
https://itep.org/55-profitable-corporations-zero-corporate-tax/

 

[Racing_Andy]

I don't believe in any electric subsidies. The lifetime CO2 of a hybrid Prius from production of all components and usage over 150,000 miles or 10 years is 18.5 Met/tons, a Tesla EV, is 21.9 Met/tons. Thomas edison, smart electric guy and friend of Henry Ford once counseled Henry Ford on whether he should swich to Electric propulsion. Here's how that went, "
Mr. Edison

I believe market success, not government, (read the populaces money) is far better at picking winners or losers. Think is, the market competition forces innovation, not government subsidies.

so long answer, but you are correct, no country should muck up International trade with their favor poured on vehicles built inside their borders.

Where did those emissions estimates come from? I'm curious to see what went into them.

 

[sweekrut]

Nothing voted on yet, but change (for the better) is in the air.

https://electrek.co/2021/05/27/electric-car-us-tax-credit-up-less-tesla-vehicles/

The proposed changes are:

1. Limiting the $7,500 tax credit to EVs with retail prices below $80k.
2. Eliminating the phase out for total EVs sold.
3. An additional $2,500 tax credit for EVs assembled in U.S.
4. An additional $2,500 tax credit for EVs assembled by union workers.

How to get $2500 tax credit for EV asembled. Is that above $7500 tax break?

Sponsored