Electric cars

Democrats on the verge of ruining their plan for electric cars

As Democrats frantically negotiate the shape of their social spending program with multiple deadlines and looming economic chaos, they are would have considered “Test the resources” of some of their new programs. Progressives have long derided means testing – the phasing out of benefits above a certain income threshold – as a practice that undermines social solidarity and forces the government to create an expensive and confusing bureaucratic apparatus. It also turns out that the most popular and long-lasting programs run by the federal government (Medicare and Social Security) are not phased out above any income level.

Nonetheless, Congressional Democrats talk about applying means-tested to a critical climate idea: tax breaks for the purchase of electric vehicles (EV). Today, most electric vehicles are excessively expensive, and consumers can only recoup that initial money over time with existing tax credits and reduced fuel and maintenance costs. The lack of charging infrastructure is an additional deterrent and helps explain why just 2% of new vehicle sales in the United States are electric.

To resolve these issues, House Democrats offers up to $ 12,500 in tax relief, deducted at the time of purchase, rather than forcing buyers to wait for a tax refund as they should with the existing EV program. But it appears moderates hoping to lower the price of the reconciliation package are set to gut that provision by imposing tighter income thresholds for electric vehicle subsidies, lowering the income threshold from $ 400,000 to $ 100,000. .

The moderate plan fundamentally prioritizes fairness over the underlying policy goal. The rich, of course, don’t need government support for their electric vehicle purchases. Yet the other and much more important goal is to move away from gasoline vehicles by any means necessary. And resource control is anathema to this project, because all but the richest Americans are price sensitive. Yes, giving the wealthy tax break to get in a $ 90,000 Tesla seems unfair, but if it helps pave the way for a world without internal combustion engines, it’s worth it.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *