It is not surprising that the Inflation Reduction Act, which will increase the costs of EVs for everyone, also increases the price.
The duct tape runs out so you go to Home Depot. You pass a booth selling cordless drills for 20% off while you’re there. You return home to your wife dismayed at the fact that $150 was lost during your trip, but she is excited to hear that you had managed to save $30. That is exactly the type of logic that we witnessed in Washington over weekend.
After several weeks of insisting that Americans needed the Inflation Reduction Act, Democrats and media couldn’t stop talking about it. Yet somehow, not a single voice could utter the word “inflation” any longer. That is what happens when we try to figure out how spending hundreds of billions of dollars more on new projects was to be considered an effective way to save money.
Take note of all the items in the bill that were mentioned after the fact, but none of them are included here. Concerned the reduction of costs for goods and servicesIncluding: a continuation of the ACA subsidy, the prescription drug program, the climate change issue, and more that doubling the IRS’s size. The intent to go after companies with high taxes isn’t a move that results in the reduction of the prices of food or other products.
This farce is based on cement-headed thinking. I want to focus only one thing. This will massively change our attitudes towards electric cars, which is one of the most popular topics in the media. There will be tax credits For those who are interested in EVs (the money for which comes from — where?) – a subsidy that does not end up lowering prices, it needs to be added. However, there are many wrinkles. This payout is below the cost of celebration.
The income of the recipients is used to determine which vehicles are eligible for these cuts. They are also limited to certain vehicle price ranges and a limit on components. Remember that Joe Manchin was required to join the board to pass this checkbook bill. He insisted that EV Batteries must be domestically sourced.
The bill’s one component would make it clear that no vehicle with battery components from China would be eligible to receive the tax credit after 2024. Many cars now use parts from China.
Manchin was unable to remove this item from the list.
He told reporters last week that he wants automakers to “get aggressive and make sure that we’re extracting in North America, we’re processing in North America and we put a line on China. I don’t believe that we should be building a transportation mode on the backs of foreign supply chains. I’m not going to do it.”
Manchin We were able to include a mandateThe 40 percent requirement for EV batteries must be made from U.S.-based minerals or countries with U.S. Free Trade Agreements or materials that have been recycled in North America. Vehicles also need to be assembled with parts made in the US, and not contain minerals originating from any nations termed a “foreign entity of concern.” This would include China. As a result, many electric vehicles would be exempted.
When the bill is approved, the two-thirds eligible electric vehicles are removed from the eligibility list for the tax credit. When the requirements for vehicle components are implemented next year, the number of namesplates that qualify for full tax credit will fall to zero. The environmental bill (not inflation) that everyone cheers to make us EV-friendly will effectively turn EVs into reality.More expensive.
You can cheer on journalists and Democrats, so have fun! Reduplication of InflationThe bill contains the words to save the earth and put every American behind the wheel an electric car. The reality is far too different.
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