The Bright-side of the EV Tax Credits Going Away

[sodamo]

Saying the incentives are paid for by tax payers is a stretch in an imbalanced budget...
I'm in his camp. If I get a benefit, I will use it!

kinda like those who profess to only use other resources and not the fed $ to pay for prohibited services.
I’m still looking for that list of folks so upset with this bill that they absolutely refuse to accept and will refuse any of the tax reductions. And the addendum saying “role me back to pre 2017, I’ll send my check.”

My Slate purchase not dependent on the EV credit, but I would have used it.

 

[Letas]

It's easy to convince people to buy things with Other People's Money.

Here's another potential moral hazard to consider:

EV ownership skews toward higher-income demographics, so the EV credit is a Tax Cut For The Rich, at least to some extent.

I think the credit did a great job accelerating adoption for “middle class” or “upper middle class” folk (how do you even define those these days!), but the used credit did a GREAT job addressing your concern. Unfortunately the used market wasn’t saturated enough to see the same benefits and adoption the new credit saw.

 

[sodamo]

It's easy to convince people to buy things with Other People's Money.

Here's another potential moral hazard to consider:

EV ownership skews toward higher-income demographics, so the EV credit is a Tax Cut For The Rich, at least to some extent.

My Gawd, how dare you say that in public.! The rich must pay their fair share.

 

[sodamo]

I think the credit did a great job accelerating adoption for “middle class” or “upper middle class” folk (how do you even define those these days!), but the used credit did a GREAT job addressing your concern. Unfortunately the used market wasn’t saturated enough to see the same benefits and adoption the new credit saw.

So I have a friend who decided last year to upgrade from her Leaf to a Kia. Of course she got the new EV credit, but she was even more excited to find a way to use the credit on the Leaf resale which resulted in a better resale. She was excited to relate that with the original credit, the local power company credit and the resale credit her driving cost were mostly covered.

 

[AZFox]

The sword has a double edge.

Can you think of any Extremely Rich persons who've benefited tremendously from EV tax credits?

It boils down to POSIWID - The Purpose Of a System Is What It Does, which is not necessarily what it was intended to do when conceived.

 

[Letas]

The sword has a double edge.

Can you think of any Extremely Rich persons who've benefited tremendously from EV tax credits?

It boils down to POSIWID - The Purpose Of a System Is What It Does, which is not necessarily what it was intended to do when conceived.

The income limit was $300k for household income-I’d argue not “extremely rich” in today’s society (unfortunately).

But yes, double edge sword, some benefit when they don’t need it and some don’t benefit when they do!

 

[Doctors Do Little]

The sword has a double edge.

Can you think of any Extremely Rich persons who've benefited tremendously from EV tax credits?

It boils down to POSIWID - The Purpose Of a System Is What It Does, which is not necessarily what it was intended to do when conceived.

Preach it, @AZFox. All of the EV credits didn't apply if your AGI > $400K? So, they loop-holed it so that they simply applied it as a business credit to the dealer if they leased it and they discounted the lease accordingly....all of a sudden, voila, rich folks were getting (some) credits too.

 

[AZFox]

The income limit was $300k for household income-I’d argue not “extremely rich” in today’s society (unfortunately).

The extremely rich person I thought would come to mind reaped benefits from selling the EVs, not buying them.

 

[Doctors Do Little]

The extremely rich person I thought would come to mind reaped benefits from selling the EVs, not buying them.

I gotta get in on that game then...so that I can gradually become one of them extremely rich persons...one re-sale at a time. Oh wait...BBB...sigh, nevermind.

 

[Letas]

The extremely rich person I thought would come to mind reaped benefits from selling the EVs, not buying them.

Them extremely rich guys always seem to find ways to get more money… I gotta get on their agenda.

 

[AZFox]

POSIWID is pernicious.

Here's an example: Corporate Average Fuel Economy (CAFE) Standards.

CAFE Standards have resulted in bigger and bigger vehicles, pickups and SUVs in particular. Wrap your head around that for a minute. Fuel Economy standards caused the complete elimination of lightweight and relatively fuel-efficient (per vehicle mile) small pickup trucks compared to what we're allowed to buy.

Why? Follow The Money.

It's not by accident because it can't be. When the standards started working against the original stated cause, the Anti-Federal National Government could have made adjustments. They didn't. On purpose. Familiarize yourself with the concept of Regulatory Capture and you'll start to understand why.

Recognition begets intuition.

 

[AZFox]

For clarification, my Sour Grapes posts are not meant to disparage people who see an economic incentive and take advantage of it. I'm just pointing out that those incentives have other consequences most people wouldn't ever consider, including saddling future generations with extra federal debt, helping upper-middle income people save money on their taxes, etc.

Put another way, I'm not commenting about the player, I'm commenting about the game.

 

[Doctors Do Little]

For clarification, my Sour Grapes posts are not meant to disparage people who see an economic incentive and take advantage of it. I'm just pointing out that those incentives have other consequences most people wouldn't ever consider, including saddling future generations with extra federal debt, helping upper-middle income people save money on their taxes, etc.

Put another way, I'm not commenting about the player, I'm commenting about the game.

Yeah, yeah...You'll be posting about the WNBA next and how commercial it's become since CC entered last year. We see you.

 

[E90400K]

I think the tax credit has been a crutch all along and has prevented development of a higher energy density battery at a lower cost*. Now we are in a situation where the charging infrastructure can't support a better battery solution because the infrastructure was not future proofed for higher charging rates.

I'm glad the tax credit is gone because now the industry can get off its ass and create a better battery*.

*If it is affordably possible.

 

[EverythingSlate]

POSIWID is pernicious.

Here's an example: Corporate Average Fuel Economy (CAFE) Standards.

CAFE Standards have resulted in bigger and bigger vehicles, pickups and SUVs in particular. Wrap your head around that for a minute. Fuel Economy standards caused the complete elimination of lightweight and relatively fuel-efficient (per vehicle mile) small pickup trucks compared to what we're allowed to buy.

Why? Follow The Money.

It's not by accident because it can't be. When the standards started working against the original stated cause, the Anti-Federal National Government could have made adjustments. They didn't. On purpose. Familiarize yourself with the concept of Regulatory Capture and you'll start to understand why.

Recognition begets intuition.

You remind me of the Omega car..