{"id":329628,"date":"2024-05-22T09:40:01","date_gmt":"2024-05-22T07:40:01","guid":{"rendered":"https:\/\/climatescience.press\/?p=329628"},"modified":"2024-05-22T09:40:03","modified_gmt":"2024-05-22T07:40:03","slug":"electric-vehicle-subsidies-as-complex-and-costly-as-ever","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=329628","title":{"rendered":"Electric vehicle subsidies as complex and costly as ever"},"content":{"rendered":"\n
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From CFACT<\/a><\/p>\n\n\n

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BY DAVID WILLIAMS:<\/strong><\/em><\/p>\n\n\n\n

Electric vehicles (EVs) may be the most subsidized product in America. Federal taxpayers shell out $7,500<\/a> every time a new eligible electric vehicle is purchased (usually by wealthy buyers<\/a>). State and local taxpayers chip in<\/a> an additional $1,500 for each EV purchase. Then, there are the tens of billions of dollars<\/a> \u201cinvested\u201d by policymakers into building EV plants. Even these bank-breaking concessions aren\u2019t enough to please the Biden administration. Recently finalized EV tax credit rules expand eligibility<\/a> for the subsidy while maintaining bizarre trade sourcing rules likely to lead to further tariffs from China. It\u2019s time for President Biden and lawmakers to ditch protectionism and finally end EV subsidies.<\/p>\n\n\n\n

From the start, President Biden\u2019s fumbling approach to EV subsidies has harmed the economy without bolstering ecology. In 2022, the chief executive declared<\/a>, \u201c[t]hanks to American ingenuity, American engineers, American autoworkers\u2026 if you want an electric vehicle with a long-range, you can buy one made in America.\u201d Prices were already through the roof, with taxpayers being asked to shoulder these pricy purchases. Kelley Blue Book estimates<\/a> that the average price of a new EV is more than $65,000, compared to $48,000 for gas-powered cars. Biden imposed requirements that EVs must undergo \u201cfinal assembly in North America,\u201d contributing to even higher prices for taxpayers and consumers.<\/p>\n\n\n\n

Biden\u2019s rules make production cost-prohibitive by restricting the foreign mineral inputs (e.g., graphite) that could go into tax credit-eligible EVs. The administration has since reversed course<\/a> and allowed for a grace period for graphite sourcing. However, the new rules<\/a>\u201cintroduce a stricter test for measuring whether 50% of the vehicle\u2019s critical minerals come from the United States or a free trade agreement partner\u2026[requiring] automakers to more precisely account for the value added at each step of the supply chain.\u201d The net effect of all these confusing new rules is to expand the number of vehicles eligible for EV tax credits while increasing compliance costs. And, of course, this cost will be passed on to taxpayers and consumers.<\/p>\n\n\n\n

Instead of tethering absurd rules to a complex and costly program, the Biden administration should start from scratch and axe the tax credit. EV subsidies are showered onto the wealthiest Americans at the expense of their poorer neighbors. According to a 2023 analysis<\/a> of California EV purchase patterns by the news outlet CalMatters, \u201cMost of the median household incomes in the top 10 [zip codes with the highest share of EVs] exceed $200,000, much higher than the statewide $84,097. Typical home values in those communities exceed $3 million, according to Zillow estimates.\u201d In comparison, \u201celectric cars are nearly non-existent in California\u2019s lowest income communities: only 1.4% of cars in Stockton\u2019s 95202, where the median household income is $16,976, and 0.5% in Fresno\u2019s 93701, where the median is $25,905. Most are plug-in hybrids, which are less expensive.\u201d This study\u2019s findings are consistent with earlier multi-state surveys. A 2018 study by Dr. Wayne Winegarden of the Pacific Research Institute found<\/a> that \u201c79% of electric vehicle plug-in tax credits were claimed by households with adjusted gross incomes of greater than $100,000 per year. Households with incomes greater than $50,000 per year claimed 99% of the credits.\u201d<\/p>\n\n\n\n

This stunning regressivity ensures that subsidies are a net-negative for ecology. Wealthy Americans primarily purchase <\/a>EVs as secondary cars, keeping them in the garage for occasional outings. EV owners are largely still using conventional cars, and there\u2019s less-than-hoped-for substitution between gasoline and electricity. As a result, extra pollution is generated via increased EV production without corresponding decreases in driving emissions. One 2022 Harvard study suggests<\/a>, \u201cforegoing gasoline in favor of volts may actually increase, not lower, overall emissions in some cases.\u201d This is far from the outcome envisioned by \u201cgreen\u201d activists and policymakers.<\/p>\n\n\n\n

The Biden administration and lawmakers ought to seriously rethink adding more fuel to the dumpster fire of EV subsidies. Struggling Americans shouldn\u2019t be forced to foot the bill for these over-hyped toys for tycoons.<\/p>\n\n\n\n

David Williams is the president of the Taxpayers Protection Alliance<\/em><\/p>\n\n\n\n

This article originally appeared at Real Clear Energy<\/a><\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Electric vehicles (EVs) may be the most subsidized product in America. Federal taxpayers\u00a0shell out $7,500\u00a0every time a new eligible electric vehicle is purchased (usually by wealthy buyers). <\/p>\n","protected":false},"author":121246920,"featured_media":329632,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691821977,691828726,691828725,691828727],"class_list":["post-329628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-electric-vehicles-evs","tag-ev-tax-credit","tag-most-subsidized-product","tag-us-president-joe-biden","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/05\/00f995f2548b0b27c0a8a8d89106c47f3d.jpg?fit=1600%2C900&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1nKA","jetpack-related-posts":[{"id":244972,"url":"https:\/\/climatescience.press\/?p=244972","url_meta":{"origin":329628,"position":0},"title":"Green Energy: Greatest Wealth Transfer to the Rich in History","author":"uwe.roland.gross","date":"02\/22\/2023","format":false,"excerpt":"We are in the midst of history\u2019s greatest wealth transfer. 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