Congress must not extend the electric car gravy train
Nobody wanted them. We didn’t need them. That’s why Obama & Co. shoved them down our collective throats. All part of his ‘green energy’ hoax. Tesla makes extremely expensive models only the super rich can afford. They get thousands in tax breaks and Tesla founder, Elon Musk, is a billionaire thanks to the mountains of taxpayer funded subsidies that without which his company would fold like a cheap tent.
The $7,500 electric vehicle tax credit was established in 2008 and phases out once a manufacturer reaches 200,000 fully or plug-in electric vehicles sold in the U.S.
There is always a cost to manipulating a free market. This tax credit, like all subsidies, artificially picks winners and losers.
The data show that three-quarters of the electric vehicle tax credits are claimed by consumers earning more than $100,000 a year. Should wealthy people be given such a tax break?
The simple truth is that without these generous tax incentives, electric vehicles would not be as competitive. Their resale value is less. Their range is affected by cold temperatures. They cost more money. Eventually, electric vehicles may be cost-competitive with traditional vehicles. But not today or anytime soon.
Propping up a non-competitive part of the automobile industry wastes taxpayer money and distorts the market.
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