Category: Taxes

By on February 16, 2022

us-capitol, public domain

President Joe Biden and Democratic lawmakers have suggested ending the federal gas tax until 2023 as a way to offset fuel prices that are nearing record levels and possibly appease some on-the-fence voters ahead of midterm elections. Senators Mark Kelly (D-AZ) and Maggie Hassan (D-NH) recently pitched the bill in Congress. While the White House has not made any official endorsements, it’s offered tacit support by saying it didn’t want to limit itself in terms of finding new ways of easing the financial burdens Americans are facing during a period of high inflation.

“Every tool is on the table to reduce prices,” White House assistant press secretary Emilie Simons said in regard to a possible gas tax holiday. “The president already announced an historic release of 50 million barrels from the Strategic Petroleum Reserve, and all options are on the table looking ahead.” Read More >

By on December 29, 2021

If there’s anything that’ll get my stomach into a twist, it’s the government talking about the merits of reducing people’s ability to own things. Fortunately, the 36-hour flu I just experienced made me nigh-invulnerable and someone had forwarded me the latest on what U.K. Parliamentary Under-Secretary for the Department for Transport Trudy Harrison had to say about personal vehicle ownership. She’s very keen on public transpiration but not so interested in the plebian masses having access to their own, individual modes of transport.

Earlier this month, she told a virtual audience at shared transport charity CoMoUK that the United Kingdom needed to move away from “20th-century thinking centered around private vehicle ownership and towards greater flexibility, with personal choice and low carbon shared transport.”  Read More >

By on December 10, 2021

General Motors CEO Mary Barra has chimed in on the weeklong open discussion about whether or not it’s a good idea for America to embrace the Biden administration’s EV tax credit plan, which just so happens to be deeply intertwined with the Build Back Better Act’s cavalcade of federal initiatives.

As we’ve already covered the topic more than once, we’ll avoid the recap and simply post the relevant links where Tesla CEO Elon Musk recommended pitching the entire bill into the trash and Transportation Secretary Pete Buttigieg went to bat for the White House by suggesting the updated tax scheme was a necessity for electrification to thrive. Barra opted to go with the latter take, stating that it could help accelerate EV adoption. Read More >

By on December 8, 2021

U.S. Transportation Secretary Pete Buttigieg has responded to criticisms Elon Musk has made about the Biden administration’s plan for electric vehicle subsidies.

The Tesla CEO believes the Obama-era EV tax credits were more than sufficient, with his own company serving as physical proof, and suggested the entire Build Back Better Act be tossed into the toilet. But Secretary Buttigieg said it was a necessary item if the United States hoped to advance electrification, swiftly transition away from combustion vehicles, and escape the perils of climate change (formerly known as global warming).  Read More >

By on December 7, 2021

Elon Musk has continued bashing the Biden administration’s tax credit legislation designed to spur electric vehicle adoption, this time suggesting that the entire bill be scrapped. Included as part of the Build Back Better Act that’s focused on addressing various social, infrastructure, and climate issues, Musk suggested the entire text simply be done away.

“Honestly, I would just can this whole bill,” he stated at The Wall Street Journal’s CEO Council Summit, appearing remotely from Tesla’s construction site in Austin, Texas.  Read More >

By on December 3, 2021

Tesla CEO Elon Musk has sold another 934,091 shares of the company, worth a hefty $1.01 billion, as a way to meet tax obligations related to the exercise of options to buy 2.1 million shares. But it’s just a drop in the bucket, as Mr. Musk’s offloading of Tesla stock has surpassed $10 billion overall. That’s roughly 10.1 million shares since the CEO asked Twitter users at the start of November whether or not he should dump 10 percent of his existing stake in the company following its big move to Texas.  Read More >

By on March 5, 2021

On Thursday, President Joe Biden spent part of his day listening to a group of lawmakers discuss how much the United States might need to spend on fixing its horrible infrastructure. It’s an issue America has neglected through multiple administrations and has frequently been set back by partisan conflict.

Considering the White House is ruminating on how to source trillions of dollars in new infrastructure spending after the U.S. just printed $9 trillion (almost 25 percent all USD currently in circulation) for COVID relief, that’s unlikely to change. Everyone is worried about raising taxes and causing inflation during a period of economic uncertainty, or skeptical that the government will use the new funding responsibly. But our roads (among other infrastructure projects) are reaching a point where they can no longer be ignored, placing the entire country in a particularly sour pickle.  Read More >

By on December 15, 2020

The Alliance for Automotive Innovation (AAI) is proposing a national strategy for the United States it claims will help keep the country competitive. However, the AAI represents automakers, parts suppliers, and technology firms around the globe — making this more of a plea to U.S. policymakers and the industry to remain laser-focused on electrification, connectivity, and vehicular automation. It’s pitching its preferred global strategy, not some custom strategy for helping the U.S. achieve dominance because it’s telling the European Union and Asia the exact same story.

Elsewhere, the eight-part plan is being touted as an invaluable tool to help guide America back toward automotive relevance. But here, we remain skeptical.

Read More >

By on December 4, 2018

2018 Chevrolet Bolt - Image: Chevrolet

White House economic adviser Larry Kudlow announced Monday that the Trump administration is seeking an end to federal subsidies on electric cars. Interestingly, the move appears to be related to General Motors’ plant closings and layoffs. The company’s restructuring plan hasn’t gone over well with policy makers or the American public, with many accusing the automaker of abusing years of tax breaks, only to reduce its workforce as a way of pursuing new technologies, businesses, and further bolstering its profit margins.

However, cutting GM out of the electric vehicle subsidies deal is more likely to impact its rivals than anything else. The company said it’s on the cusp of the EV tax credit ceiling already, with the gradual phase-out of those incentives likely to take place through 2019. Yet Kudlow pointed to the elimination of the credits as one way of punishing GM for eliminating so many jobs, echoing President Donald Trump’s threats from last last week.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow explained. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”  Read More >

By on December 4, 2018

Despite everything  you’ve heard about road rage, motorists tend to be pretty meek — at least when it comes to government regulations, and particularly in Europe. They passively accept, and pay for, mandated safety and emissions regulations as well as for taxes on the fuel for their vehicles. Perhaps, though, they aren’t as passive as we think. For the past three weeks, France has erupted in massive protests and riots that are being called the Gilet Jaunes protests, demonstrations that are spreading to Belgium and the Netherlands, and those protests were spearheaded by motorists.

Gilet Jaunes is French for “yellow vests,” which many of the protesters are wearing as a statement against intrusive, expensive, and sometimes petty government regulations and taxes. (For the past decade, French motorists have been required by law to carry bright yellow/green safety vests in their vehicles and wear them in the case of a breakdown.) Read More >

By on March 27, 2018

2015 Hyundai Santa Cruz Crossover Truck Concept - Image: Hyundai

The United States and South Korea reached a free trade agreement on Monday that spared the Asian country from punitive steel tariffs, assuming Seoul keeps an eye on just how much steel it sends to American buyers.

A quota on Korean steel exports means the country can only sell 70 percent of its recent average (2015-2017) to the U.S., though it is hardly Korea’s largest export market. The deal, reached “in principle” ahead of both countries’ meetings with North Korean leader Kim Jung UN, will also see South Korea raise the limit for U.S.-made vehicles that needn’t conform to local safety standards from 25,000 to 50,000.

It’s good news for the Trump administration, but not everyone’s thrilled. Hyundai’s union is hopping mad that a steep tariff on Korean-built pickups — which was set to expire in 2021 under the previous agreement — was just renewed for another 20 years.  Read More >

By on March 16, 2018

Steel Worker

Earlier this month, President Trump signed an executive order imposing a 25 percent tariff on foreign steel and a 10 percent tariff on foreign aluminum. Hoping to receive an exception, the Japanese auto lobby warned that the U.S. import tax would definitely inflate the price of models built by the companies it represents. That’s bad news.

However, the White House has already omitted its NAFTA partners from the tariffs, adding that it would consider further exceptions based on countries’ contributions to U.S. national security, military alliances, trading history, and how much they pay into strategic alliances like NATO.

While Japan is a longtime trading partner with the U.S., there currently exists a $69 billion deficit between the two countries. Trump also bemoaned Japan’s unwillingness to accept American imports. Still, the two have shared military alliances throughout the 20th century, with one ugly exception during World War II. They currently operate under the Treaty of Mutual Cooperation and Security and the U.S. currently considers the Japan one of its closest allies, despite it not being a NATO member — placing it in reasonably positive standing for tariff exceptions.  Read More >

By on March 8, 2018

Steel Mill

There was quite the backlash against President Trump’s plan to impose sweeping steel and aluminum tariffs on Wednesday. However, the White House pressed onward to formalize the measures on Thursday afternoon with assurances from the Commander-in-chief that they will be imposed “in a very loving way.”

Apparently, Canada and Mexico won’t be subjected to the 25-percent tax on steel imports and a 10-percent tariff on inbound aluminum. But the exception may only be temporary and the overall feeling on the tariff proposals are mixed, to say the least. Considering that the automotive industry accounts for a significant portion of the nation’s steel and aluminum imports, Rust Belt states are worried. Michigan, Ohio, Indiana and Pennsylvania receive around 20 percent of the steel and aluminum sent to the United States. Each of the states went red in the 2015 election after Trump said he would protect manufacturing jobs. But Trump claims that’s exactly what he’s doing.  Read More >

By on March 7, 2018

Peugeot, Image: Peugeot

The threat of new import tariffs has PSA Group worried about its plan to return to the United States. Following President Trump’s proposal to levy a 25-percent tax on steel imports and a 10-percent tariff on inbound aluminum, Europe balked at the suggestion, leading to further threats of a car tariff.

Right now, the U.S. levies a 2.5-percent tax on imported European vehicles, far less than Europe’s 10-percent tariff on vehicle travelling eastward across the Atlantic. There’s a 25-percent U.S. tariff on European vans and trucks, too, which explains why crates of Mercedes-Benz van components sail into the port of Charleston, South Carolina at regular intervals.

According to Trump, any European retaliation against the proposed metal tariffs — which seem all the more likely given yesterday’s resignation of the president’s pro-free trade economic advisor, Gary Cohn — would see the U.S. ratchet up its car tariff. If the scenario comes to pass, your dreams of one day buying a new French car in America could easily be dashed. Read More >

By on February 24, 2018

Bentley Continental GT Supersports

After hitting it big with the Fab Four, George Harrison wrote the scathing song Taxman in protest of the British government’s “Super Tax” on high-income earners. At the time, the boys faced a 95 percent tax on their earnings (“There’s one for you, nineteen for me”), and Harrison reportedly did everything he could to offshore his wealth.

Britain’s dismal weather wasn’t the only reason rock musicians fled the country during this period.

In beautiful British Columbia, a mountain- and wine-filled area north of Seattle, the provincial government’s recent budget has some auto dealers steaming mad and worried their customers will hit the road in search of deal. The province’s New Democratic Party government, elected last year, plans to levy a 25 percent tax on the purchase of very high-end vehicles, with lesser models facing a 20-percent markup. However, many dealers wonder where the law of diminishing returns comes into play. Read More >

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