We all know that the Left hates free enterprise. Most of them have completely bought into the lie that through subsidies and price controls Big Government can make the evil free market fairer for consumers, well they believe they can convince you of that anyway.
The new EV Tax Credits that will now extend through 2032 are a thick soup of environmental policy, political revenge, and trade union payoffs. In the end, the consumer is left paying for it all, the very thing that the Libs think is evil about free enterprise.
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| Review Geek has this excellent article on the new EV Tax Credit that takes effect on January 1st |
Of course, the Biden administration is selling this thing like a victory for everyone; $7500 for consumers and incentivizing American jobs all wrapped up in an environmentally responsible gift box. However, the reality is that the "invisible hand" of economics can not be ignored.
Reality Is Truth is rarely in favor of government subsidies because they are a double whammy for consumers. In this case, the $7500 subsidy that will be given to consumers will be added directly to the price of the vehicle before the subsidy is applied. So the sticker for a $47,500 EV will instantaneously become $55,000 (coincidentally the upper limit for the subsidy). Now you supposedly will get the $7500 back at the end of the year, but remember the original price of the EV was $47,500 the subsidy has saved you nothing. Plus even though you get that $7000 in your pocket, that $7500 and the millions of other $7500 payouts are added directly to our tax burden as a nation. That means you, me, your children, and your grandchildren have to pay that back in taxes. Your State sales tax will be higher as well, immediately, because you are paying a tax based on 55K instead of 47.5K. The price of EVs will FOREVER be $7500 higher going forward.
Trade Unions have always been a big voting block for Democrats and they came out in a big way for President Biden in 2020 and for the Democrats in the mid-term elections. So this subsidy is constructed in a way to benefit Big Labor. Theoretically, the subsidy is only available for vehicles that are mostly American-made. That sounds great, right? This was done inorder to force manufacturers to to make big investments in manufacturing infrastructor in North America. This means more autoworkers and more jobs right? Well the Trade Unions think that, however the subsidy allows for parts and cars manufactured in "trade partner nations", of which China is one. Plus when the subsidy expires in 2032 why would manufactureres still keep those expensive uncompetative factories open? So ultimatly this will really do nothing for the US worker but will help Big Labor leadership to continue to soke their membership for millions of dollars in dues, while at the sametime Democrats continue to support open boarders to constantly supply cheap labor and undermining the Union's power to keep wages high. Open boarders stagnate wages for everyone, FYI, and in inflationary times that is indeed another double whammy for citizens.
As stated early, politically, the Democrats are usuing the EV Tax Credit also as a way to punish political rivals. Elon Musk has been, and still is, one of the bigest envronmental activists. It's even fair to say that is is kind of a leftist. His company, Tesla, has been one of the primary benifactors of EV subsidies over the last 20 years. But this time, Elon is locked out. Why? Because he has been unwilling to support finatical leftist/fascist behavior and insists that policies make sense. Therefore he has found himself on the other side of many issues, like freedom of speech and the realities of wind energy and the downside of forced dependence on electric vehicles. Because of this the Democrats put a cap on how expensive a EV cars can be. If the car costs more than $55,000, there is no subsidy. Almost all of Tesla's cars are over 55K. Tesla is a major brand and has led the way on inovation and some might say made the utilization of EVs possiable for the other manufacturers. But now Elon Musk is a target, honesty and free speech can not be tolirated from anyone, even someone who for the most part supports your policies. This limit will cause, not only Elon, but all manufacturers to remove all the wiz-bang extras that make EVs intresting to the consumer, forcing them to accept boring instead of the features they truely enjoy. But we always knew the miserable Left want to remove joy from life anyway.
Bottomline, bend over, you are screwed as a consumer. As Claton Williams once said, "...it's like rape, you can't do anything about is so you might as well lean back and enjoy it". Yes that is otragouse and each and everyone of us should be outraged at how the Democrats are using our systems of government to punnish and victumize it's citizens, EV subsidies are just another example of how Democrats will be raping us for the next decade.
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