Trump Tax Plan Might Get Rid Of Electric Vehicle Tax Break

Trump Tax Plan Might Get Rid Of Electric Vehicle Tax Break

What is interesting in this is that so many outlets were reporting that the tax break might go away with the GOP tax plan. While they were all guessing, since they didn’t wait for the plan to be released (some were still guessing after it was released), few published anything that said “yeah, it’s going away.” The USA Today is part of the latter

The House Republican tax plan would ax the tax credit for electric-vehicle buyers, dealing a blow to the ambitions of Tesla and other battery-car makers as they try to give the nascent technology mainstream appeal.

The tax overhaul proposed Thursday would eliminate the tax credit of up to $7,500 that’s currently offered to buyers of vehicles such as the Tesla Model 3, Chevrolet Bolt and Nissan Leaf.

The tax credit is viewed as crucial to propelling technology that’s currently more expensive than comparable internal combustion engine cars.

Proponents of eliminating the incentive say the government shouldn’t pick one technology over another, or should cut most tax credits to simplify the overall code and lower rates.

I thought Liberals hated tax breaks and “loopholes”. No? Realistically, there should be no tax break. People who buy gas vehicles that get great gas mileage do not get them. People who buy minivans to haul around their children do not get them. Why should EVs get them? Especially since many, like the Teslas, are really for people of wealth. Your average middle class person is not going to be purchasing a vehicle costing over $100,000.

And they do not always equate to a savings of $7500. They will often be much less. Furthermore, if you lease the vehicle, which many do, the money goes to the manufacturer, not the consumer. Also, the credit is based on the battery pack capacity. For instance, if you buy a Toyota Prius EV, it only qualifies for a $4,502 federal tax credit.

As for the rest of the plan? Well, there are some winners and losers. Businesses, both large and small, are winners, which is generally a good thing, because people work for them, and tend to win. The reduction of the corporate tax rate is a the biggest aspect of the bill. It will supposedly allow citizens to file their taxes on a postcard (really, just one page). And other things. Obviously, Democrats are trotting out their same old talking points, because they have nothing else, and have no actual ideas they’re willing to put forth. But, really, this bill is small ball. It will supposedly save the average family a bit over $1100 a year. Hey, we can all use a bit more of the money we earned to stay in our pockets, right? But, it’s small ball. Sure, small ball works. Get ’em on, get ’em over, get ’em in (didn’t work well for my Dodgers in game 7, since their 2-5 hitters weren’t). This bill doesn’t really swing for the bleachers.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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