Tax Credits for Electric Cars Must End
Subsidize the driving habits of less than 1 % of the population – that’s a fad. Subsidize those of 10% – that’s a huge budgetary pain and you are going to have to cut deep into some other programs or raise taxes. Do it for half of the people and you can kiss your national budget goodbye. Finance ministers can only spend money they get from taxes they expropriate from everyone they can lay hands on. Taxes on vehicles and fuels are a weighty portion of that intake. They need it in order to cover other stuff that they need in order to prevent the House of Cards to collapse. Now – remove the taxes in and add the subsidies out. can you see the problem? All those subsidies will end – and with them the EV industry. Every country that slashes subsidies sees EV sales drop to zero in an instant.
Days after General Motors’ electric vehicle (EV) tax credit was cut in half last month, some of the top Democratic recipients of the corporation’s campaign contributions began a quest to save their benefactor’s Washington windfall.
