Electric Car Tax Credit
Is Obama's New Electric Vehicle Incentive Plan Flawed?
Progress haters in the media, like Rush Limbaugh and Neil Cavuto love to bash those evil tax credits for electric vehicles.
Constantly reminding the world of the sinister socialist plot to incentivize the production and integration of a “better mousetrap,” they have a tendency to harp on this so-called waste of taxpayer dollars. Of course, they rarely make a peep when we want to talk about the billions of taxpayer dollars we spend every year to provide welfare checks for the very profitable and very mature oil and gas industry.
I guess it's only socialism when it fits their agenda.
Nevertheless, it now looks like Obama's pushing to increase these tax credits to $10,000 from the previous $7,500.
Oh, these guys are going to have a field day.
Although according to reports, these new subsidies may end up going to automakers instead of consumers. To be honest, if something isn't put in place to make sure these automakers pass these incentives along to consumers in an effort to spur production, I may be joining the voices of the naysayers.
Now I haven't read the fine print on this thing, and I'm certain what's proposed will not be what's eventually offered. So I'll hold off on criticizing this new plan until we get further details.
In the meantime, check out these new proposal highlights recently published by Patrick Olsen of Cars.com:
- The proposal eliminates the current $7,500 electric vehicle tax credit and replaces it with advanced technology vehicle credit.
- There would be a maximum $10,000 per vehicle through 2016, with no cap on how many vehicles it might apply to; that would drop to $7,500 in 2017, $5,000 in 2018 and down to $2,500 in 2019.
- The credit would go to the vehicle's seller or to the financing company.
- The proposal's title suggests the credit would be tied to "production" of vehicles, but where that production would need to take place remains unclear.