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Tags: costs | electric | vehicle | tax | credits | least | advantaged

Electric-Vehicle Tax Credits Hurt Low-Income Workers

charging batteries of electric mini green cars at electric charging station

Lauren Fix By Tuesday, 08 January 2019 04:48 PM Current | Bio | Archive

If your pension fund said they wanted to buy massive amounts of stock in a business that makes $100,000 dollar vehicles, are totally reliant on government subsidies, and don’t have the impact the auto-maker claims, what would you say? Probably a bad investment.

Well that’s where we stand with electric vehicles. A product so prohibitively expensive to purchase, make, and maintain, that for years the federal government has been propping them up on taxpayer funded subsidies.

As it stands right now, EV makers no longer qualify for government subsidies once they sell a certain number of units. Makes sense that once a new industry is off the ground, they should be able to stand on their own two feet without government support. However, a recent effort has begun to lift the cap on EV subsidies, so they will forever be government funded.

This is a terrible idea for multiple reasons. First and foremost, there just simply isn’t a market for electric vehicles, so why do we keep funding them on hard working Americans’ tax dollars?

Supporters of lifting the cap will argue that by limiting the subsidies available, you are hurting low income earners, and limiting their access to fuel efficient vehicles.

This would make sense if these earners were the ones the subsidies were helping in the first place. But the reality is, it’s the top earners in this country who disproportionately benefit from these subsides.

Most EVs cost over $100,000 to purchase and are far and away more popular to those making more than that much money a year. It’s not the middle-class Americans living on a $50,000 budget.

Those Americans are driving lower cost vehicles run on standard engines, which are cheaper to purchase in the first place, are more cost effective to maintain, and don’t bring the high costs of high energy usage and payments related to installing chargers in your home or place of business.

So, we come back to the fact that supporters of EV credits are essentially saying that by limiting subsidies, the government is harming lower income Americans because those tax payers aren’t funding the rich Americans their luxury cars?

It’s easy to see why electric vehicles haven’t taken off in popularity beyond their prohibitive price tags.

Local governments would have to build charging stations around their cities and towns.

There would be a never before seen strain on the electric grid, which would have to be addressed. You would have to live in an urban area where you would have access to charging stations, limiting their practical use in rural areas. And scientists admit that serious changes would have to be made in how the EVs are manufactured and how we generate the energy to charge them if EVs were to actually have the positive effects on the environment that they claim to provide.

Our government shouldn’t keep wasting those low-income Americans’ hard earned tax dollars on a product that simply doesn’t have widespread appeal, and a product they won’t purchase. If anyone is harming middle class and lower earners in this country, it’s those pushing to expand electric vehicle subsides.

It’s time we take a serious look at the money pit our government is funding and end this wasteful policy.

Lauren Fix, The Car Coach® is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. Post your comments on Twitter: @LaurenFix or on her Facebook Page.

© 2022 Newsmax Finance. All rights reserved.

It’s time we take a serious look at the money pit our government is funding and end this wasteful policy.
costs, electric, vehicle, tax, credits, least, advantaged
Tuesday, 08 January 2019 04:48 PM
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