19 thoughts on “Subsidizing Electric Vehicles”

  1. Well, that’s good, isn’t? The money won’t be spent on distorting markets regarding consumers choosing among electric and gasoline-powered cars to meet their particular needs?

    I mean, the lithium and the cobalt have to be sourced from US mines, only the same environmental movement that wants electric cars won’t let that happen, either? What is there not to like about it? Brilliant!

    Petroleum geologist David Middleton over at Watts Up With That had the take that the Reconciliation Bill could have been a lot worse than how it ended up.

    The “historical” upsizing of the IRS, however, was a big surprise. Yes, President Biden and his same-party colleagues campaigned on, “Out plan is to make the IRS much, much bigger?”

  2. I don’t know how that provision in the bill about the batteries needing to be manufactured in the States will play out but there is another interesting aspect to it. My understanding that they both removed the 200K vehicle cap on the $7500 dollar tax credit and more importantly you now get the credit at the time of purchase. Provided you purchase from a dealer; sorry Carfax. Before you didn’t receive until you submitted your tax return the following year, where if it is actually at the time of purchase you are literally reducing the amount you finance on the vehicle by that amount.

    1. Watch the sticker price go up by as much or more, overnight. The dealers and manufacturers aren’t going to just leave that money laying around for you, are they?

      Also, just how long do you think it will take to hire and train 86,000 IRS agent? Five years? Ten years? I believe you have to have an accounting degree to be hired.

      1. My CPA has been in the tax preparation business, among other things, his entire career. He wearily says that IRS new-hires have no idea what they’re doing (most IRS employees have no idea what the tax code contains), and he winds up training them. But 7-11 can’t find employees…where is the IRS going to get them?

        1. Bureau of Federal Prisons work/study release program. Honestly Michael that’s an easy one. From dealing crack to cracking your bank account. They’re already experienced professionals. They can also hire outside consultants to help. Check with the consigliere’s for the Genovese family business.

      2. “Watch the sticker price go up by as much or more, overnight. The dealers and manufacturers aren’t going to just leave that money laying around for you, are they?”

        Probably; hopefully the free market will sort that out. Raise the price too much and it would impede sales. In any case it is quite a development if true. Before you had to wait until the following year’s submitted tax statement to get the result and even then you only got the $7500 credit if you paid that much in federal income tax in the purchase year. No carry-over to next year benefit if you didn’t. And even more importantly there was no reduction at the time of purchase to reduce the amount you were financing.

      3. F150 lightning reportedly went up by $8500.

        Wound Law: the price of a good or service will always try to rise to the base subsidy plus whatever someone is willing and able to pay.

          1. However my pocketbook is wounded when I experience Wodun’s Law. So the former description is also accurate. 🙂

          2. “However my pocketbook is wounded when I experience Wodun’s Law. So the former description is also accurate.”

            I have been leaning toward replacing my ’08 Honda Accord MT with a Toyota RAV4 Prime PHEV; the $7.5K makes it more attractive. But if the price promptly climbs by the same amount (and with the raging inflation) likely will continue hold off and wait and see.

    2. Tesla doesn’t have/use “dealers”, just company retail outlets. Does that still work for Tesla?

      1. “Tesla doesn’t have/use “dealers”, just company retail outlets. Does that still work for Tesla?”

        No idea. But given the naked hostility the current administration has for Tesla (Musk) wouldn’t be surprised if they were somehow excluded.

  3. What a clown show these people are.

    Want to be a mover and shaker in Washington DC?
    Want to be a leading policy wonk to help shape the national agenda?
    Want to be the first person the main stream media consults on the issue of the moment?

    Then!
    Get your training at our school and earn the necessary credentials now! And before you know it, you too can be a six-term US Senator!

  4. It’s called money laundering. They subsidize electric cars (or solar power, or Iowa corn fuel) and the beneficiaries send them campaign funds. The AGW industry used to be a 6 billion $ industry and it’s probably much larger now.

    1. How do you get in on the gig to sell carbon credits? Buy land and say if you don’t get money you will cut down all the trees? Then cut down the trees as forest restoration and ask for money to plant new trees?

      1. You need about a thousand acres, but yeah. Except you don’t threaten to cut down trees. It is much simpler. You cut them down and sell them. Use the proceeds to plant new ones. Then send in the invoice for planting the new trees for your carbon credits.

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