The plan by the tax cut happy GOP to eliminate the EV tax credit is chock full of hypocrisy and double dealing. “Hey, let’s cut some taxes. First up, we eliminate a tax credit that has been benefiting U.S. consumers and U.S. automakers!”
Sheesh. I am perfectly happy to stipulate the sincere objection some fiscal conservatives might have to “subsidizing” certain segments of the market because that puts the government in the position of “picking winners and losers”. However, that objection loses a lot of validity if the same group making it then turns around and advocates paying a subsidy to coal and nuclear industries because they cannot compete economically with the modern energy systems that are cheaper and cleaner. That would seem to me to be “picking winners and losers”, and rather hypocritical.
Also, an argument can be made to cap the EV tax credit to cars costing less than $40,000, since that is far enough above the median new car price to account for the expense of new technology, while low enough so as not to give tax credits to people who don’t really need them. If you can drop $75K+ on a new car, you are in an income bracket that can afford to give the tax credit a miss.
I would also accept converting the tax credit into a “point of purchase” rebate so that people in the lower tax brackets who would not benefit from the credit (by virtue of not owing enough federal tax) could offset the cost of a new EV. Heck, I would also say that we should offer a lesser credit for used EVs, say $1500.
No matter where you fall on this issue, I believe that we should agree that fiscal conservatives can’t have it both ways. If you don’t like subsidies/credits/incentives, then ban all of them. If you are going to let legacy manufacturers and energy producers have them, then new manufacturers and energy producers get them too.
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