$150 million in EV tax breaks

[EdmondLeaf]

Have you ever wondered how many of your tax dollars are subsidizing electric vehicles? The folks over at Edmunds’ Inside Line have just done the math and published their report, which is based on 2011 EV sales. Inside Line indicates that U.S. consumers purchased or leased more than 18,000 electric and plug-in hybrid cars in 2011, qualifying them for $135 million in federal tax credits. The $135 million in federal tax credits (18,000 multiplied by $7,500) primarily consists of Nissan Leaf and Chevy Volt sales. Nissan sold 9,674 Leaf EVs in 2011, making American buyers eligible for up to $72.5 million in federal tax credits. Additionally, U.S. consumers that purchased Chevy Volt EVs were eligible for upwards of $57.5 million in federal tax credits.

http://www.torquenews.com/1081/taxpayers-pay-more-150-million-ev-tax-breaks
http://www.insideline.com/chevrolet...-than-150-million-in-tax-credits-in-2011.html
Edward Ellyatt commented

These are tax credits. The tax payers did not pay my tax credit. I was paid back with my own money. I know I know how to spend my money better than the government does. So far 857 gallons of gas not imported from countries that hate us not used in my car alone.

 

[TRONZ]

Money very well returned to the right people!

 

[smkettner]

Still it is $7,500 less money in the pool for other commitments no matter where it originated or where returned.
BTW I think Edmunds Inside Line should get the actual number as we know many did not get the full $7,500.

 

[Deleted member 3147]

The 1% gets a lot of tax breaks. Time for some for the rest of us!

 

[planet4ever]

I agree that it doesn't matter how many hands the money goes through, it is still (up to) $7500 per EV added to the national debt. Those of us who have the financial resources have an obligation to provide the support needed to keep our nation great. But I liked the math in the comments -- last year it was about $1.50 per taxpayer, which I would call an investment in [choose one or more from the following alphabetical list]

• Cleaning up the atmosphere
• Delaying the date the world runs out of oil
• Not funding terrorists
• Slowing our financial bleeding
• Trimming global warming
• Using American energy

Ray

 

[Leon]

Nice. Add 6000 state and you will find my nice little $13,500 refund. Not bad. It's about time a few of my "TAX" dollars went to something important to me. 16,000 miles in 9 months and I'm probably saving money (oh wait, I created a job with that money, but that's another story). Forget the planet. This car just makes me happy.

 

[thankyouOB]

wouldn't buy half an F22.

 

[thankyouOB]

you know, the plane USAF officers are refusing to fly because it is too dangerous and has fatal flaw in its human support systems.

 

[Nubo]

I agree that it doesn't matter how many hands the money goes through, it is still (up to) $7500 per EV added to the national debt. ...

Strongly disagree. That assumes that it was the government's money to begin with and that it "gifted" it to me.

The fact that our govt. can't balance its budget is a totally separate issue from taxation rates and how much so-and-so pays in taxes. The unfairness of the current tax structure needs fixing and that is a valid and necessary debate. But it is a completely separate debate from a balanced budget. Until that dysfunction is repaired, the govt will run deficits as it has for the bulk of my lifetime -- regardless of how much it collects in taxes.

 

[planet4ever]

I agree that it doesn't matter how many hands the money goes through, it is still (up to) $7500 per EV added to the national debt. ...

Strongly disagree. That assumes that it was the government's money to begin with and that it "gifted" it to me.

I make no such assumption. The government spends only the money which the Congress appropriates. Once the laws are in place the debt is baked in unless the citizens pay what their representatives have signed up for. It's not the government's money to begin with, but it is the government's debt to begin with. Would you feel better if I worded it as, "it is still (up to) $7500 per EV not subtracted from the national debt"?

Ray

 

[mkjayakumar]

Wouldn't $150 million be the total 1 yr compensation for the CEO of one of the big oil companies.

 

[DaveinOlyWA]

probably old news, but what about Apple's contribution to the US tax coffers?? if one wants to complain about the $100 Million we EVers got, then how about Apple funneling most of their i tunes profits to a figurehead office in Scandinavia because the corporate tax rate is only 11%?

so instead of getting 1.5 Billion estimated tax revenue from i tunes purchases, the US gets nothing?

 

[Nubo]

I agree that it doesn't matter how many hands the money goes through, it is still (up to) $7500 per EV added to the national debt. ...

Strongly disagree. That assumes that it was the government's money to begin with and that it "gifted" it to me.

I make no such assumption. The government spends only the money which the Congress appropriates. Once the laws are in place the debt is baked in unless the citizens pay what their representatives have signed up for. It's not the government's money to begin with, but it is the government's debt to begin with. Would you feel better if I worded it as, "it is still (up to) $7500 per EV not subtracted from the national debt"?

Ray

Nope. My view remains that there is no correlation whatsoever between the EV tax credit and the national debt. Congress knows what its revenues are, and how the EV tax credit affects those revenues. It's their law. It is not a surprise sprung on them where they have to borrow to make up the difference. The EV tax credit affects revenues, not expenditures. The EV tax credit is not an expenditure.

There is nothing to guarantee that an additional $7500 in revenue would have been applied to the debt, just as the substantial taxes I continue to pay are not being applied to the debt.