Tag: Taxes

By on April 7, 2022

The Biden administration held another meeting with automotive executives about how to ensure electric vehicles go mainstream. But this time it included Elon Musk, who runs the most successful EV brand in the entire world.

After taking criticism for shunning the Tesla CEO in earlier meetings, senior officials held an event on Wednesday where he and other industry leaders could contribute as to how the United States should handle a national charging infrastructure and spur adoption rates. Despite Musk having often expressed a dissenting opinion in regard to President Biden’s strategy, the White House said that the meeting was productive and resulted in a “broad consensus that charging stations and vehicles need to be interoperable and provide a seamless user experience, no matter what car you drive or where you charge your EV.”  (Read More…)

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 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…)

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