Tag: Taxes

By on May 10, 2021

General Motors is asking the federal government to reset the federal EV tax credit system, effectively requesting a personal favor. As one of the first manufacturers to get an electric vehicle to market that people actually wanted to buy, GM hit the 200,000 cumulative EV sales cap in 2018. While customers could still get money back through April of 2020, the automaker exhausted its allotment of $7,500 subsidies before most of its rivals.

Now it wants to see the government press the reset button on the program under a pretext of fairness. GM executives are claiming that companies investing in electrification shouldn’t be handicapped by not getting additional money from taxpayers. It seems anything but fair, frankly. Though it should be said that all-electric models have a poor track record in terms of profitability. The Chevrolet Bolt certainly didn’t make any money, however, GM CEO Mary Barra has said new versions of the model will be capable of turning a profit.  (Read More…)

By on December 27, 2019

Next year, the European Union plans to adopt aggressive new rules that would see automakers fined if their total annual vehicle sales exceed predetermined carbon limits. Obviously automakers aren’t thrilled with the new fines and higher emission mandates, but France is facing additional criticism for its decision to take things a step further.

France’s parliament has adopted a new law penalizing cars that emit carbon dioxide above a certain threshold while still adhering to EU regulations. Vehicles failing to adhere to the French rules will be subject to a 20,000 euros ($22,240) tax in 2020, nearly twice the current fine. Meanwhile, the country is mulling the possibility of culling EV incentives — an odd move, considering its aim to transition its populace to zero-emission vehicles. (Read More…)

By on November 6, 2019

It’s not just the increased taxation on diesel fuel that’s prompting Europeans to throw in the towel on compression ignition. Look to local lawmakers for Reason Number One why diesel, which just a few years ago comprised the majority of new car sales in the UK, is suddenly less popular than this writer was in high school.

Following similar moves by select German cities and other jurisdictions, the UK city of Bristol has become the first municipality in that country to approve a diesel ban, with fines set to be levelled against anyone caught entering the city with a non-spark engine. Amazingly, this motley crew of second-class vehicles includes transit buses. (Read More…)

By on October 24, 2019

On Tuesday, California Governor Gavin Newsom responded to a new report claiming oil companies have been overcharging customers over social media.

“[California] drivers have paid an average of 30 cents more per gallon. There’s no identifiable evidence to justify that,” Newsom said. “I’m demanding an investigation. If oil companies are engaging in false advertising or price fixing — legal action should be taken.”

With California leading the charge against the federal government’s proposed fuel economy rollback, Newsom’s words are a bit of a faux pas. While we agree that companies should not be engaging in price fixing, California’s high fuel prices are largely its own doing. Newsom’s claims completely ignore this rather obvious fact — calling his ability to effectively negotiate the national fueling fracas into question.  (Read More…)

By on October 18, 2019

Chicago is considering sticking ride-hailing services like Uber and Lyft with a new tax that would add a few bucks onto each ride. Mayor Lori Lightfoot has proposed a $40-million-per-year tax increase as part of a broader traffic plan modeled after London’s famous congestion fines. That means not all rides would be subject to the same fees, but each trip taken within the city would still cost a little extra.

While congestion charges are all the rage in Europe, they’re uncommon in the United States. New York City recently decided to financially penalize every driver taking a trip below 60th Street (something I’m not thrilled about), positioning Chicago as the second major metropolitan area in the U.S. to move forward on congestion fees. Lightfoot claims it’s a necessary first step “to improve mobility and further our goals of ensuring sustainable, affordable and reliable access to transportation options in every neighborhood.”  (Read More…)

By on September 11, 2019

With electric-vehicle owners eligible for sizable tax breaks, and ineligible for federal fuel taxes, it often feels like they’re not pulling their weight when it comes to maintaining this great nation’s transportation infrastructure. However, feelings are sometimes wrong — when it feels like an Arby’s night, for example.

There are actually 26 states that presently impose fees upon EV owners and, according to Consumer Reports, 11 charge more than the amount drivers of similar, gas-powered cars pay in gas taxes, with 3 charging more than twice the average amount. Another dozen states are considering adding fees, with CR’s own research stipulating that 10 would require electrics to pay more than they would if they were powered by gasoline.  (Read More…)

By on May 16, 2019

Image: Nissan

As you read earlier this week, the state of Illinois wants motorists to pay up. Big time. A new proposal that stands a good chance of passing into law not only more than doubles the state’s gas tax, it would also hit electric vehicle drivers with an annual $1,000 fee — a bill for adding wear and tear to the state’s roads and bridges while depriving state coffers of sweet, sweet gas tax revenue.

Some EV drivers are not what you’d call “happy” about it. But are you? (Read More…)

By on May 13, 2019

tesla model 3

Like most states, Illinois hasn’t raised its gas tax in years, keeping it at 19 cents since the musically gifted year of 1990, and, like most states, Illinois needs cash for pressing infrastructure repairs. Illinois’ state gas tax joins a slew of other taxes, including income tax, that’s bundled into local pump prices, but one type of driver was able laugh at all the chumps lining up for dino juice.

The electric vehicle driver.

By virtue of their emissions-free powerplant, EV drivers side-step this area of taxation. Unfortunately for the Tesla owners of Cook County and other jurisdictions, those days may soon come to an end. A proposed law would see EV owners dinged $1,000 a year — their contribution to maintaining the roads and bridges their hefty EVs ply on a daily basis. As you’d expect, many are not happy.

Neither are conventional vehicle owners, however, as the proposal would more than double the state’s gas tax. (Read More…)

By on December 20, 2018

Barely a day goes by when the TTAC chatroom doesn’t devolve into a discussion of the weird differences between the U.S. and Canada. Chris Tonn wants to take a Nissan Micra across Canada, eating various poutines along the way, while this writer drools over certain (unavailable) civil liberties offered just 45 minutes to his south. Vast gulfs in pricing and taxation usually spring up as topic fodder, too.

Given the amount of money yours truly forks over for gas, there’s additional drool reserved for U.S. pump prices. Various taxes heap, on average, an extra 38 cents on every liter of unleaded up here. That’s an extra $1.44 for each gallon, and the roads aren’t exactly paved in gold.

Now, imagine learning you’ve been paying way too much for three straight years. (Read More…)

By on August 31, 2018

Donald Trump, public domain

Earlier this year, President Donald Trump took a renewed interest in European tariffs after deciding he didn’t like what he saw. He argued it was time for the United States to consider a fresh tax on vehicles manufactured in the European Union to level the playing field. “If the EU wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a tax on their cars which freely pour into the U.S.,” he wrote in March.

A few months later, America floated the ridiculous-sounding proposal of abolishing all automotive tariffs between the U.S. and EU. Surprisingly, Europe was highly receptive. German Chancellor Angela Merkel even directly addressed the issue by saying she would support lowering EU tariffs on U.S. car imports. The European Union now seems willing to pursue a zero-tariff solution on automobiles.

However, Trump has since changed his tune. The new rhetoric coming from the White House is that the deal, which was originally pitched by the U.S., is no longer good enough.  (Read More…)

By on August 14, 2018


While still an industrial giant on the global scene, Mitsubishi is a shadow of its former self in the United States. After leaning a bit too hard on its status as a value brand, annual deliveries went from about 346,000 units to just 58,000 between 2002 and 2012. Meaningful progress has been made since then, but the road to redemption has been a hard one.

The looming threat of tariffs isn’t making things any easier for Mitsubishi. The automaker doesn’t have a single production facility in the U.S., meaning it will receive the full force of whatever percentage is tacked onto the import fee. There is hope, however. Bizarrely, the brand’s biggest weakness (U.S. sales) is also its greatest strength when it comes to enduring import tariffs.  (Read More…)

By on August 5, 2018

Image: GM

We previously reported that General Motors was seeking an exemption from U.S. tariffs that could affect the domestic wellbeing of the Buick Envision, the brand’s Chinese-made utility vehicle positioned between the Encore and Enclave. At the time, GM hadn’t weighed in on if it would pull the model from the United States if it didn’t get a pass into the country.

Since then, General Motors President Dan Ammanm has said the exception is the only way the automaker sees itself being able to continue selling the model in America. The automaker confirmed that the Envision’s domestic sales are insufficient to rationalize U.S. production but noted GM needed the model to have a complete lineup against brands like Audi, Lexus, and Mercedes-Benz.

Mercedes-Benz… Seriously(Read More…)

By on August 3, 2018

Image: GM China

General Motors wants an exemption from a 25 percent U.S. tariff for the Buick Envision, the Chinese-made sport utility positioned between the Encore and Enclave. On Thursday, the automaker said it filed the request on July 30th with the U.S. Trade Representative to exclude the model from the prospective Section 301 tariff on products shipped from China.

The Envision hasn’t been a strong seller in the United States. While it managed to move 41,040 units in 2017, this year is not on track to meet that number. Obviously, the model has had some troubles. Early reviews were unfavorable, often accusing the Envision of being a faux luxury vehicle with an overly ambitious price tag. However, the manufacturer has since dropped the price and updated the vehicle for the 2019 model year.

Unfortunately, enough damage was dealt in those first two years to make the new model look less appetizing to customers. It now holds the stigma of an overpriced, Chinese-made compact crossover that falls short just about everywhere. It needs time to rebuild its image after the refresh, and it won’t be able to manage that if it is taxed into oblivion.  (Read More…)

By on July 30, 2018

BMW logo emblem badge

BMW says it will hike the price of two utility vehicles in China to cope with the additional cost of tariffs on U.S. car imports in the world’s biggest vehicle market. The models are the X5 and X6, both manufactured in South Carolina.

This news comes after China increased import duties on all automobiles from the United States to 40 percent earlier this month. China had previously said it would reduce its already high vehicle tariffs across the board as a sign of good faith — which it did, while simultaneously slapping new punitive tariffs on the U.S. Meanwhile, President Donald Trump has postponed prospective automotive tariffs while negotiations take place with Europe.

If you needed proof that a trade war is on and were wondering how automakers would handle it, look no further. BMW says it will have to raise the models’ Chinese MSRP by 4 percent to 7 percent. It’s a relatively modest increase considering how utterly massive the new import fees are, which indicates a willingness from the automaker to absorb some of the associated costs just to remain in the market. It’s something BMW is not alone in doing, and there could be a valuable lesson to be learned from that.  (Read More…)

By on July 20, 2018

The U.S. Department of Justice is demanding that Georgia Sheriff Butch Conway reimburse the government for his procurement of a 707-horsepower Dodge Charger Hellcat, which it does not believe falls under the umbrella of reasonable purchases for a police department.

However, the DOJ isn’t questioning whether the department could make use of such a vehicle, as the federal government already approved its purchase. It just isn’t sure that Conway is being responsible with it, since it sounds like the Gwinnett Country Sheriff may be using it as his daily driver.  (Read More…)

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