Showing posts with label Tax Rebate. Show all posts
Showing posts with label Tax Rebate. Show all posts

Sunday, December 2, 2012

Conservatives Should Support The EV Tax Credit

I often hear people say they don't want to support EV development and that the $7500 tax rebate offered for the purchase of an EV is taking "their" money.  In essence this is true since all government funding comes from the tax base that we all pay into.  For Tesla's 20,000 Model S vehicles they are projecting to produce next year this amounts to around 50 cents per US citizen, and is a drop in the bucket compared to other tax breaks that some individuals and companies get but others do not.
However I'd argue that the outrage is entirely misplaced for those conservative, and libertarian, individuals and does not fit with one of their basic philosophies.  Supposedly one of their large concerns is too much taxation and too much misuse of those funds by big government.  Following that logic any program which allows even some citizens to hold onto their tax money and get it out of the hands of government should be seen as a good thing.  Who knows how better to spend that money than the people who earned it?*
Another aspect of the rebate that seems to bother them, especially in the case of Tesla, is that the rebate mostly goes to the wealthy, which makes it even worse.  However, isn't that the basis of trickle down economics, and the supposed reason they oppose increasing taxation on the rich?  Allow them to keep more of their money and they will buy more stuff and create jobs with it, right?

In truth I suspect the anti EV rebate talking point is something they use without much thought in an attempt to support their inherent anti-EV bias.  It's not rational and does not even mesh with their own philosophies.  I will point out that there are some conservatives who do support EV's and do understand the benefits of the tax credit, unfortunately they seem to be under represented.

My own feelings on the topic are that I'm quite willing to see the EV tax credit go away, one second after all the other much larger tax loopholes are filled.  I'm waiting....


*Actually I'd argue against that concept since many people squander their cash with complete disregard for financial responsibility and the rest of us are left to pick up the pieces, but that's another topic.