dbsb3233
Well-Known Member
- First Name
- TimCO
- Joined
- Dec 30, 2019
- Threads
- 54
- Messages
- 9,297
- Reaction score
- 10,812
- Location
- Colorado, USA
- Vehicles
- 2021 Mustang Mach-E FE, 2023 Bronco Sport OB
- Occupation
- Retired
I agree that the US federal tax credit is less arbitrary from a timing aspect. As you say, the timing on that one is dictated by how many units are sold, not some arbitrary date. (It also steps down the phase-out rather than just dramatically cuts it off.) Sounds like some other countries have a hard date though.This is the only part of your statement I disagree with. In the US the Federal government neither chose which company to prefer nor to prefer innovators over laggards: if a company makes BEV's they are eligible for the indirect subsidy on the first 200k they make no matter how long it takes them. If a company doesn't make a viable car that people want, they don't get the indirect investment. Early innovators had no advantage over late adopters, other than their ability to capture the market. The government doesn't decide who gets the investment, the free market does. It's a perfect example of government assisting capitalism in a free market in order to ensure everyone's best interests are served. I think Adam Smith would approve of the government assist in this case, because he would accept the scientific facts that burning fossil fuels cannot continue indefinitely. He would understand it is otherwise prohibitively expensive for an existing car company to do without that assistance.
In the case of the Netherlands there is a tax incentive whose expiration was determined long before the Mach E existed. I don't know since I don't live there, but my guess is that there was a movement against indefinitely subsidizing BEV's that got its way, and Ford is late to the party - which IS Ford's fault.
The picking of winners and losers via consumer tax subsidy is a broader issue than the timing aspect, of course. But I won't venture there since that's a far more philosophical discussion than fitting for a car forum. ? I was mainly grousing about how some of these arbitrary dates have unfortunate consequences.
Sponsored