Pretty much everyone knows that EVs ain’t cheap. One thing that helps people buy them anyway is the big tax breaks you get from the feds. The idea is that this enables more normal folks – meaning low- or middle-class – to afford cars they couldn’t otherwise. But is that how it actually works out?
Here are Five Fast Facts on who really benefits from EV subsidies:
- 📝 Setting The Stage - The government is clearly pushing EVs. There are laws and regulations forcing EVs to be most (or all) of new cars sold in the next few years, as well as fuel efficiency standards that can’t be met without big numbers of EVs. Ignore the fact that 46% of current EV owners are planning to switch back to gas cars due to poor charging infrastructure. Oooh, buyer’s remorse stings!
- 🚫 Not For The Poor - Across the country, 14% of households making more than $100k have an EV. In middle-income households that number drops to 5%, and for those making less than $40k it’s a measly 2%. So…not many “normal folks” are getting those tax breaks!
- 💰 Big Bucks -The most popular class of cars is the compact SUV. The average price for a gas-powered compact SUV is a little under $36k, but for an EV in that class you have to shell out over $53k! Spend a whole year’s salary on a car? Hard pass.
- ❄️ Cold Shrinkage - EVs don’t do well in cold weather. The range drops by about 30%, which is probably why there are less than 5,000 EV registrations in Alaska, Wyoming, and North Dakota combined. One might say EVs are frozen out of cold weather locations. 😜
- 🌪️🌊 Hurricane Explosions - The two hurricanes that recently blew through the South illustrated another issue: when in contact with salt water, EVs have this lovely tendency to explode. Once they catch fire, they’re also much harder to put out and they emit dangerous fumes. #winning
🔥Bottom line: So, to sum up: EVs cost more, aren’t well supported, and can’t handle bad weather…all while the tax breaks that are supposed to let normal people afford them don’t actually help normal folks. Got that? Good thing that the government spent $2 billion of taxpayer money on them last year.
Are tax breaks for EVs a good use of taxpayer money?
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