Why I think tax rebates for hybrids should be ended

Specific horsepower tax is just a way (in Europe) to punish the wealthy that can afford extra horsepower.

Penis size aside, what is wrong with an efficient production of horsepower? One of the reasons that I like my Prius over my former 'SULEV' green car (2004 Honda Civic Hybrid) is that with the Prius, I get HORSEPOWER and SULEV and ECONOMY and SIZE and COMFORT and UTILITY. Contrary to popular belief, it is possible to go fast and save energy...all racing engineers know this.

 

USA has a guzzler tax which is paid at time of vehicle purchase. It is a percentage of the purchase price of the car and is invoked if the vehicle is rated too inefficient.

 

The Energy Tax Act of 1978 established a Gas Guzzler Tax on the sale of new model year vehicles whose fuel economy fails to meet certain statutory levels. The gas guzzler tax applies only to cars (not trucks) and is collected by the IRS. The fuel economy figures used to determine the Gas Guzzler Tax are different from the fuel economy values provided on this web site and the Fuel Economy Guide. The tax does not depend on your actual on-the-road mpg, which may be more or less than the EPA published value. The purpose of the Gas Guzzler Tax is to discourage the production and purchase of fuel inefficient vehicles. The amount of any applicable Gas Guzzler Tax paid by the manufacturer will be disclosed on the automobile's fuel economy label (the window sticker on new cars).

GAS GUZZLER TAX
Unadjusted MPG(combined)* Tax
at least 22.5 No tax
at least 21.5, but less than 22.5 $1000
at least 20.5, but less than 21.5 $1300
at least 19.5, but less than 20.5 $1700
at least 18.5, but less than 19.5 $2100
at least 17.5, but less than 18.5 $2600
at least 16.5, but less than 17.5 $3000
at least 15.5, but less than 16.5 $3700
at least 14.5, but less than 15.5 $4500
at least 13.5, but less than 14.5 $5400
at least 12.5, but less than 13.5 $6400
less than 12.5 $7700

 

Anoldhouse said it. Get the gov't out of using the tax code for social engineering. There are other ways to incentivize (is that a word?). Everytime you agree to a tax incentive for one thing, you make it OK to do it for another.

It is all special interests, be they good (moral) or bad (immoral), it is in the eyes of the beholder. Special interests equate to selfish interests.

In its simplest sense, getting a tax credit/deduction/waiver/whatever on anything is demanding that someone else subsidize your purchase.

Am I applying for the deduction for 2005, yes, would I support an end to the deduction or credit, yes. Is that duplicitous, I don't think so.

One step at a time. I don't think we have to fix all the ills with our tax code at one, but if we don't start somewhere, it will never change. Adding hybid incentives ADDS to the tax code, and it is the wrong diection to go. My 2 cents worth.

 

Hence the problem.

<div class='quotetop'>QUOTE(wstander\";p=\"113728)</div>

Hence the problem. SUVs are considered trucks so both SUVs and trucks are exempt.

Not only that, they are also exempt from some of the safety testing and standards.

The first thing *I* would do if I were Supreme Dictator of the World for Life (OK, not first but in the top 10) would be to stop all those exemptions and subsidies. Like tax credits for Hummers. Trucks and SUVs should have a gas guzzler tax and have to meet safety standards like other cars. No more exceptions. It's all vehicles.

 

Godiva - you are sort of on the right track - but all rebates and credits should be eliminated. The most efficient system is to set regulations like minimum fuel efficiency and then let market forces determine how to accomplish this rather than having the government decide that hybrids should be favored over other technology.

Look at the stupid convoluted energy bill that just passed that is designed to favor domestic (big3) hybrids over imported hybrids. The car starts to loose its eligibility once they sell over 60,000 of them. If the technology is desired why limit it to only 60,000? Next the formula looks at both mpg and improvement over equivalent car sold in 2002. Since a Prius existed in 2002 the improvement for 2006 will be much less than let's say a Ford Escape that had no hybrid version in 2002. Special interests at work again!

 

I'm half with you.

I have no problem with a guzzler tax as long as it applies to all vehicles. Add those SUVs, Minivans and trucks to that tax scale and let's see how many get sold.

And no exemptions on safety testing and standards for SUVs and trucks. They get tested and have to meet the same safety standards as all other vehicles. The SUV rolls over too easy? Tough. Change the design.

There are plenty of Soccer Moms toodling down the road in their minivan with no idea that their vehicle isn't as safe as they think. It didn't have to meet the safety requirements as a real car. No more.

Everybody back in the pool. Sink or swim.

If the market forces are really going to apply, there needs to be a level playing field. Everyone meets safety standards. Guzzler Tax Tables applied to all vehicles. Everyone. SUVs, trucks, Hummers and yes....hybrids. The fact that I'll pay nothing doesn't bother me at all.

Free market....right? And I made a smart choice.

 

Maybe we should just start driving tanks...
They'll be probobly 100% tax exempt. That would be considered a truck, right?

 

I thought a Hummer was a tank?

:mrgreen:

 

<div class='quotetop'>QUOTE(kirbinster\";p=\"113842)</div>

Actually, the "loss of FULL eligibility" only begins somewhere between 3 and 6 months AFTER 60,000 are sold by a given manufacturer, and continues at diminished rates for a full year after that. The same rule does apply to the American manufacturers. But, yes, it was a tactic to limit the Japanese makes while allowing the American makes to catch up and have their turn.

The formula does not say "compare a 2006 Prius gas mileage to a 2002 Prius gas mileage." It says compare a vehicle, in it's reference weight class to the AVERAGE 2002 EPA gas mileage for ALL cars that year. It's a perfectly fair way of doing that.

 

Thanks David, I stand corrected. Its always hard to read government speak

 

<div class='quotetop'>QUOTE(kirbinster\";p=\"113971)</div>

You're welcome.

This is so complicated and it's going to be misunderstood by most people. It took me hours to find the right version of the bill that actually passed Congress, and then it took me hours to read and re-read the section on "Alternate Motor Vehicles and Fuels" to figure out just what was going on and what the implications were for a Prius purchase. The media, as usual, is already screwing up reporting on the facts.

I was motivated to do so because I've been on a waitlist now for 4 months and just been informed there's an allocation to my specification with my name on it. I've been trying to figure out if I should pass on taking delivery later this month or wait until January. The jury's still out on that one. I need more information about the 2006 model (packages, features, improvements, colors, MSRP, etc.) that will apparently be available on August 16, from what I'm hearing.

 

At a minium, one should get 40mpg to qualify for a tax break. But since you brought it up, you get a bonus for a small d**k, with a sliding scale depending upon the degree of smallness. Gotta have some sympathy here.