Category: Taxes

By on November 24, 2015

Volkswagen Polo

German investigators are looking into whether Volkswagen executives or engineers broke laws by lying about carbon dioxide emissions in 800,000 cars sold in Europe, the New York Times reported.

Authorities near the automaker’s headquarters in Wolfsburg say they are focused on five Volkswagen employees, but wouldn’t identify those employees. Investigators are determining if Volkswagen employees knowingly provided false information to authorities about those cars and their emissions to qualify those cars for lower tax rates. In admitting that it lied about its emissions levels this month, Volkswagen said it would repay governments for back tax revenue lost because of the bogus claims.

This month, Volkswagen admitted it underestimated carbon dioxide output from 800,000 cars sold in Europe and said the scandal could cost the company more than $2.1 billion. According to the New York Times report, Volkswagen’s admission included a promise to repay taxes owed on owners’ cars it sold with bogus carbon dioxide numbers.

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By on November 3, 2015


Electric car sales in Georgia have halted after that state stopped offering incentives and started charging a $200 annual fee to recoup lost gas tax revenue, the Atlanta Journal-Constitution reported.

New electric vehicle registrations plummeted 89 percent from June to August after the state stopped offering a $5,000 tax break on top of the $7,500 federal incentive. Georgia’s incentive was one of the most generous in the country.

Georgia’s electric purge could portend a future in highly incentivized states, such as California and Colorado, where electric incentives and sales are still relatively strong.

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By on October 5, 2015

Subaru Sambar

Twelve countries, including the United States, reached an agreement Monday on an historic trade agreement that could economically tie together more than 400 million people in Asian Pacific and American countries. The pact would cover trade for wide ranging products, from rice to pharmaceutical drugs to cars.

The Trans-Pacific Partnership, which negotiators have been working on for eight years, would thaw trade relations among countries included in the regional zone, including Japan and the United States. For automakers in both countries, the tentative deal includes provisions for Japanese automakers to (eventually) bring light-duty trucks to the U.S. For American automakers, part of the proposed agreement included a side deal between America and Japan to allow access for U.S. automakers to traditionally closed Japanese markets.

The agreement faces an uphill battle to get congressional approval; House Republicans and presidential candidates already have roundly dismissed the deal.

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By on September 22, 2015

Are those tall buildings or are you just happy to see a 2009 Volkswagen Jetta [sportwagon]? (courtesy to the LA Times, Volkswagen’s falsified emissions data made certain 2009 model year vehicles eligible for a $1,300 green car subsidy. That subsidy, applicable to 39,500 Jetta and Jetta Sportwagen units sold, equated to a total of $51.35 million available to buyers from the government.

The LA Times used Internal Revenue Service data and Motor Intelligence, an automotive industry research body, to calculate the numbers.

The $51 million in total tax credits is just another case of automakers leveraging dumb government money to incentivize consumers to buy their vehicles.

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By on September 10, 2015

Chevron Fuel Prices In Oceanside, California Circa March 2011

California’s ambitious climate change bill was stripped Wednesday night of its toughest provision that would have cut the state’s gasoline consumption 50 percent by 2030, Automotive News is reporting.

A pared down version of California’s wide-rangning transportation bill will reach Gov. Jerry Brown’s desk, but won’t include the gas target nor a plan to fix California’s roads.

The controversial bill was met last month by an automotive lobby that flooded the state with advertisements and money to combat the provisions.

“Oil has won the skirmish. But they’ve lost the bigger battle,” Brown said, according to the LA Times. “Because I am more determined than ever.”

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By on September 10, 2015


Nissan announced Thursday that the 2016 Leaf would run more than 100 miles on a single charge in SV and SL trim, increasing its range by 25 percent over last year. The base S model will keep the 24 kWh battery that manages more than 80 miles on a charge.

For the dozens and dozens of 2015 Leafs wilting on lots around the Denver metro area — where a combination of tax credits and cash back from the manufacturer makes the Leaf the least-expensive new car in America — I can hear them calling. And after Nissan sweetened its own deal this month with no interest for 72 months, it’s getting louder.

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By on September 3, 2015

Tesla Model X

Details on Tesla’s “free” Model X for the first 10 referral buyers have been few since the beginning. First it appeared that the program would be limited by time, then it appeared it would be limited by country, now it appears that it’ll be limited by continent.

The first person to refer ten friends in each sales region— North America, Europe, and the Asia-Pacific — will receive a free Founder Series Model X.

But even more unclear is exactly how Tesla will give its winner their new Model X. Depending on how that happens, there are very few scenarios in which the new Model X owner (with 10 friends wealthy enough to buy new Model S cars) wouldn’t qualify for up to $7,500 back from the feds. Read More >

By on August 31, 2015

2012 Tesla Model S

Wall Street Journal columnist Holman W. Jenkins (great name) slammed Consumer Reports for its glowing review and better-than-perfect score for the Tesla Model S P85D, in part, because the $127,000 car still qualifies for a government tax break.

“Prostitute is not too strong a word,” he wrote. “… (Consumer Reports) is shilling not only for the car but the government policies that subsidize it.”

Jenkins takes aim at the state and federal tax incentives still available for the vehicle — which are going away in many places — and at the magazine for hyping its review so heavily, and subsequently giving it away for free on its subscription-based website. Read More >

By on August 26, 2015

Trans-Pacific Partnership Circa 2010

The head of the AFL-CIO in the United States is criticizing the current presidential administration for its pursuit of a trade zone in the Pacific that could open up Asian markets to America and vice versa, the Detroit News is reporting.

AFL-CIO President Richard Trumka wrote the administration a letter saying that a free-trade agreement with countries such as Japan jeopardizes American jobs because those countries may be able to source cheaper parts from outside the negotiated area, according to the report.

“I hope it is not the case that the Canadian and Mexican negotiators are actually holding a harder line than our own government on this issue. But due to the unaccountable lack of transparency from USTR, absolutely critical decisions are being made without our input or voice. Thousands of good American jobs and an iconic American industry are at risk, and we don’t even know what our government’s negotiating position is.”

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By on July 30, 2015


A U.S. Senate committee for transportation passed along a bill Thursday that included provisions to help domestic automakers develop and build cleaner vehicles, the Detroit News is reporting.

The proposal, dubbed the Vehicle Innovation Act, was included in a larger clean energy bill taken up by the committee. The Vehicle Innovation Act would set aside $313.6 million next year for research and development of hybrid technology, battery development and alternative fuels such as natural gas. Funding would increase by 4 percent every year up to 2020.

Nearly all major U.S. automotive lobbies representing manufacturers supported the proposal. Read More >

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