Washington’s campaign to put you in an EV will cost the taxpayer $7.5 billion through 2019, and it’s all for nothing, says a report by the Congressional Budget Office.
The policies will have “little to no impact” on overall national gasoline consumption the report, cited by Reuters, says.
Those up to $7,500 tax credits will account for only 25 percent of the $7.5 billion bill, says the CBO.
$2.4 billion are grants to battery makers and projects to promote electric vehicles, $3.1 billion are loans to auto companies.
The CBO is putting its finger on an even nastier aspect: The tax credits indirectly, but very efficiently promote the sale of gas guzzlers. Through off-sets, carmakers that sell government-subsidized EVs can now sell more gas hogs.
“The more electric and other high-fuel-economy vehicles that are sold because of the tax credits, the more low-fuel-economy vehicles that automakers can sell and still meet the standards,” says the report.
What little gasoline is saved through EVs comes at a very high price. The U.S. government will spend anywhere from $3 to $7 for each gallon of gasoline saved by consumers driving electric vehicles.