No Tax Credit Over $100K Income, Or Over $40K Vehicle, So Says The Senate, NonBindingly

BadgerGreg

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I mean how do you suggest road funding down the road once ICE vehicles become less and less? It's easy to complain about taxes but those roads don't fund themselves
I wouldn't worry about that too much. The federal government doesn't tax nearly enough as it is today (fuel tax is extremely low), so they plug the funding hole with general income tax revenue anyway. This cycle will continue because gas tax revenue in the United States has dwindled into into a joke. It will be replaced by something else. Also, individual states are raising fuel taxes to compensate.

I expect we'll have more toll roads in the future. That, and we need to tax diesel at a much higher rate so that freight moves from semi trucks to rail. Rail is a MUCH better option for heavy loads, and that change will help to reduce heavy (and damaging) truck traffic. Our highways will last much longer AND it will help to clear the highways of that crap.
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ChuckA

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The amendment passed, 51-48. Senator Fischer took to Twitter to say that "everyday Americans are living paycheck to paycheck because of the sharp rise in costs due to #Bideninflation. We shouldn't be subsidizing luxury vehicles for the rich using money from hard-working taxpayers." (Inflation is mostly being driven by high prices for used cars, which in turn is a result of the chip shortage.)

https://arstechnica.com/cars/2021/08/senate-votes-to-restrict-ev-tax-credits-despite-climate-crisis/
Congress sometimes uses tax policy to encourage socially desirable changes. I had solar installed last year and got a 26ā€™% tax credit. How much taxable income do you need to take a $7500 credit? Those that live day-to-day can buy my 2012 KIA Sorento.
 

jlauro

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To be clear, we are still getting the $7500 tax rebate for those of us who purchased the Mach E already?
That would be really be bad if they made a $7500 change retroactive. Often times they do make tax changes retroactive, but generally only ones that save tax payers money.

From the legislation:

Except as otherwise provided, this division and the amendments made by this division take effect on October 1, 2021
As mentioned, good chance the amendment will not pass as-is... and if it does you only have to worry if you didn't purchase yet.
 

ChuckA

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Tax-Tax-Tax. Has anyone looked up the VMT ? Biden wants to
tax all vehicles by how much milage we drive. This is no joke.
Look up Biden Vehicle Milage Tax !!!
The only fair way is eliminate the highway gas taxes and have everyone use toll transponders like they do in Italy. My EV uses as much road as an ICE but I no longer pay since I donā€™t use gasoline.
 

Brian707

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The only fair way is eliminate the highway gas taxes and have everyone use toll transponders like they do in Italy. My EV uses as much road as an ICE but I no longer pay since I donā€™t use gasoline.
In illinois, my EV plates are $350 a year, my ICE vehicle is $150. I wonder if the federal government will do something similar down the road or push something like this on other states than don't tack on an additional fee
 


TheVirtualTim

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The only fair way is eliminate the highway gas taxes and have everyone use toll transponders like they do in Italy. My EV uses as much road as an ICE but I no longer pay since I donā€™t use gasoline.
In Michigan, EV owners pay an additional $135 above the cost of an ICE vehicle. The registration for my Mach-E would have been $276 *if* it were an ICE vehicle. Michigan adds $100 "Registration Fee" and another $35 "Registration Tax" (not sure what the difference is between Fee vs. Tax) so it's really $411 per year. It's my understanding that they tied these charges to the rate of inflation so they will go up over time.

In Michigan, tax at the pump includes state sales tax (6%) plus the federal per-gallon tax (18.4Ā¢) plus the state per-gallon tax (19Ā¢). If a gas station is selling gas for $3/gal then roughly 50Ā¢ is taxes (that's not exact, but close).
 

EELinneman

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The only fair way is eliminate the highway gas taxes and have everyone use toll transponders like they do in Italy. My EV uses as much road as an ICE but I no longer pay since I donā€™t use gasoline.
Factor in the weight of your EV too. For commercial vehicles, they often have a tax item based on weight. Heavier cars and trucks wear roads out quicker. Now if they start taxing stickier tiers then grrrrr.
 

All Hat No Cattle

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phil said:

The US Constitution did not authorize an income tax until 1913. And government subsidies for the purchase of motor vehicles is an even more recent phenomenon.
If the Federal Government made the interest paid on an auto loan tax deductible, would that be considered subsidizing the auto industry?

Because they did it for many years, Reagan ended that deduction around 1986.

I know this because I took advantage of that tax deduction, for many years.

Bet you young guys did not know that. :) The pic is an excerpt from the 1980 IRS Tax Instructions.

But they did keep the mortgage tax deduction, so if you live in an apartment, or have your home paid off, you are subsidizing the home construction industry.

So if you believe what was posted here :

"I'll say it. It happens at $0 of income. Money should never be forcibly taken from someone who earned it and given to someone who didn't earn it. That's robbery, and it is wrong."

Shall we eliminate the mortgage tax deduction? :eek:

But to get back on topic. Even though I do not take advantage of the mortgage tax deduction, I am not against it.

So if someone is against subsidizing BEV's, they should, logically, be against all subsidies from the Government. And I mean all. :)

It is the BEV's turn at the trough.

Ford Mustang Mach-E No Tax Credit Over $100K Income, Or Over $40K Vehicle, So Says The Senate, NonBindingly tax
 

jlauro

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But they did keep the mortgage tax deduction, so if you live in an apartment, or have your home paid off, you are subsidizing the home construction industry.
I doubt it really helps subsidize the home construction industry much. I take advantage of it, but it's used more to invest and pay off other loans such as CC or auto loan instead of paying off the mortgage quicker. It may help some people from loosing their homes that get into trouble, but doubt many use it to help determine how much they can spend on construction as it doesn't help the front end pricing...
 

Ztug

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I am a strong proponent of EVs.

That said, at some point paying people to buy EVs is wrong. At what level of income that happens at, or level of assets, is not for me to say. But a billionaire shouldn't be able to get tax credits for buying anything.

No law should be retroactive though. And they should be announced in advance.
Why not? The top few percent of income pays more taxes than the rest. The bottom 50$ of the population pay no income taxes at all.
 

Ztug

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The only fair way is eliminate the highway gas taxes and have everyone use toll transponders like they do in Italy. My EV uses as much road as an ICE but I no longer pay since I donā€™t use gasoline.
But you know what they're actually going to do is they're going to keep the gasoline tax and then put a mileage tax on everyone including ice vehicles.
 

JB20

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Why do you deserve something back?
Why should I be punished for doing well? Why should I be punished for working 2 jobs and taking 4 years to self fund my associates degree? Why should I be punished for applying for every opportunity I could to move up in all my jobs that I have had? Why should I be punished for supporting my wife through college so she could become successful? Why should I be punished for doing everything right? If we are all created equal in God's eyes then why are we not equal on the taxes we pay? Why is there not a flat tax? I do not use any more social services than the next person. What is a fair share?

Regardless on your thought on our tax system....If I pay taxes then I damn well should be entitled to the same deductions as someone who pays less taxes.
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