Topic: Taxation
Stop taxing fuel efficient vehicles Reagan said, “If you tax something you get less of it” and that is certainly true for the alternate fuel industry. That is why alternate energy vehicles should be tax free. No sales tax, no luxury tax, nothing.by Carter Brown
(libertarian)
Monday, November 24, 2008
Reagan said, "If you tax something you get less of it" and that is certainly true for the alternate fuel industry. That is why alternate energy vehicles should be tax free. No sales tax, no luxury tax, nothing. And it shouldn't be under the auspices of a rebate program, nobody should need to apply for it, it should just be. Based on our knowledge of peak oil and the running costs of those vehicles, the government of the United States, and Canada, need to act as soon as possible. After all, if we don't tax it we get more of it, and we definitely want more of these vehicles on the road, especially if they fulfill the needs of consumers.
Californian emissions regulations, under the zero emissions vehicle (ZEV) mandate, requires the big five automakers to sell a certain number of these vehicles, and if they don't, they are fined $5000 per vehicle that they don't sell. Several other car companies have sprung up to fill that void if it isn't fulfilled, like Miles Electric Vehicles, and Tesla motors. Governor Schwarzenegger has very aggressively championed the cause, and has successful. The question is, why haven't others followed suit. Furthermore, the state of California is contemplating the signing of a bill that will credit consumers an additional $5000 if the vehicles are highway capable. That's $10,000, California is almost buying the whole car.
I would never condone such incredible subsidy, however I am strongly recommending to those that represent me in government, to remove those taxes. In my home province in British Columbia, there is currently government tax credits (and tax credits are cumbersome and complicated to consumers) of $4,000. Why not make it simple for them just say we aren't going apply sales tax to your $40,000 car that we really want you to buy, saving over $5,000. If the government really wants consumers to drive these cars they need to make the incentives simple!
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The views expressed in this
article are those of Carter Brown only and do not represent
the views of Nolan Chart, LLC or its affiliates. Carter Brown is
solely responsible for the contents of this article and is not an
employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
The problem with this idea is that via tax policy you have the government distorting the marketplace. The risk being the law of unintended consequences. For example do we know what the disposal cost of alternative power veichles? Are the emergency first responders prepared to cut open such cars? Would this encourage car consumers and car companies to make short term descisions cutting off paths to longer term gains.
I tend to prefer a fair, open and transperent market to one where even good intentioned regulators have to much influence.
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