ELECTRIC VEHICLE GASLIGHTING BY THE LEFT
To start I just want to say I am a fan of electric cars. If I had a daily commute of (say) 100 miles per day I would love one. Or if all I needed a car for was to go shopping, run some errands etc. They make perfect sense for that use. But given that to outfit the population of the US with electric cars means we not only have to extract metals from all over the world to build them, we also need to fully upgrade the electrical grid and come up with a failsafe way to keep electricity flowing all the time. Something we have seen is not always possible (hint hint…Texas and California..).
But the Left continues to double down and triple down on electric vehicles as a solution given that Biden has essentially prevented US Oil companies from meeting the demand by shutting down leases and adding new environmental rules, all of which add to the cost of gasoline and diesel which is skyrocketing across the country.
We have all heard a tremendous amount about the “Green New Deal” the Left wants to enact. It is claimed that it is imperative for “Climate Change”. But don’t believe it for a second. This piece examines two things- one is the hypocrisy on the Left as relates to caring for the “little guy” and the environment, and as proof I will show you where our tax dollars are being spent for “environmental change”. Secondly, given the immediate spike in gas prices, I looked at what cars get good mileage and what the costs are for the “average” driver, if you can’t just shell out $60K for a new electric car.
PART 1- TAX CREDITS FOR THE RICH
We hear over and over how great electric cars are. We have been told by the Biden Administration ad nauseum that people should not worry about $5.00 per gallon gas, they just need to pony up the cash for an electric car. Most recently it was Transportation Secretary Pete Buttigieg (failed ex-Mayor of South Bend, IN) who in addition to bragging that he has an electric car, used the moment to brag about spending another $5B of your tax dollars on charging stations. I guess because subsidizing buyers of electric cars with up to $7,500 of your dollars isn’t enough, we now need more infrastructure to get the fossil fuel derived electricity to the places where the electric cars can use it. Or something….
Anyway, any time the Left discusses how they care about “working class Americans” know that they are lying to you. And there is a very simple way to see that.
Internal Revenue Code Section 30D provides a list of electric cars and the Tax Credit you get for purchasing one. Now that might sound reasonable, the government using tax incentives for people to buy electric and hybrid vehicles. But when you look closer, you see that there is a lot going on here, and much of it is entirely contradictory.
First off, General Motors and Tesla don’t have any cars that qualify for the Tax Credit. Congress limits the Tax Credit for companies that have sold less than 200,000 electric vehicles. As a result, GM (which first sold an all electric vehicle way back in 1996 (yes, that was shortly after Al Gore invented the internet) and Tesla, the manufacturer most synonymous with Electric Cars (who appears to have sold 1.4MM electric cars in the US alone) , don’t benefit. But other car makers do. And many might not seem like the “greenest” of green cars.
Twenty six manufacturers currently sell electric or hybrid cars and SUV’s that receive Tax Credit payments of up to $7,500 per car. Some are names you likely recognize such as the Ford Escape, the Nissan Leaf and the Toyota Prius Plug In. Of the three the Toyota has the lowest starting MSRP at $25,075 (keep in mind that while MSRP can “start” at some lowball price, to add the options most want usually adds significantly to the price).
The electric bug has hit car makers in a big way and virtually every manufacturer has models they are introducing. Does it make sense for the manufacturers? I am sure there is technology being developed today that we will likely see in many cars twenty years from now. The automotive industry is always making changes as technology and safety improves. So for manufacturers, I get the desire to push into this arena. My sole question is to what extent US Taxpayers should be asked to subsidize car purchases that are more than the aforementioned Toyota Prius Plug In and Nissan Leaf.
Hypothetically if all the cars on the list were (say) $50,000 or less I would say Congress is using US taxpayer dollars to try and get low price electric cars into the public’s garages in a big way. But then we see some others on the list and it makes one wonder.
Volvo, always a popular car on college campus’ among the professor crowd, has 12 models that qualify for Tax Credits from the Volvo S60 which starts at $47,650 up through the Volvo v60 Extended Range with its $69,090 starting price tag. But Volvo, with an average starting price (for the 12 models it sells) of $60,156 is almost “economy” priced versus others on this list. Compare Volvo to Jaguar/Land Rover. The 5 models Jaguar/Land Rover have listed AVERAGE $104,120, from the lowly IPace at $71,300, to the Range Rover PHEV that starts at $157,600. Yet all of them get US tax dollars to help buy them. And there’s more….why are US taxpayer being forced to subsidize the purchaser of the Mercedes Benz EQS 580 4Matic with its $125,900 starting MSRP? Is this the “equity” the Biden Admin keeps lecturing us about?
While those models may seem like they would only appear on Rodeo Drive or 5th Avenue, the reality is, Jaguar and Mercedes are pikers when it comes to expensive cars that fleece US Taxpayers. Why should US taxpayers foot the bill so millionaires can tool around on electric power? And what about the super-wealthy? There are plenty of cars for them to choose and still get tax dollars. The Bentley Bentayga Hybrid SUV starts (starts, mind you) at $187,600. And while the IRS doesn’t list it specifically Bentley also has the Silver Spur S Hybrid. With a starting price of $204,000 I’m sure buyers appreciate US taxpayers kicking in the extra cash for their new ride. Maybe those US tax dollars can ensure the buyers get the lambswool floor mats or the “jeweled torch” (flashlight) which are both options for the Silver Spur. And of course critical to proving you are doing your part for the environment.
BTW, next time we hear Biden or Elizabeth Warren shrieking about billionaires paying their “fair share” maybe someone should ask them why they wrote the tax code that ensured billionaires get tax credits on their shiny new Bentleys.
While the Bentley may seem like it would have to be the highwater mark for luxury excess, there are plenty of choices for people who REALLY want to spend money while proclaiming to be environmentally pure. Or maybe they are just really in a hurry- Porsche has 33 different Hybrid versions on the IRS list in 2021 and 2022 model years. Like the Porsche Panamera Turbo S-E Hybrid Sport that starts at $200,400. But with 3 second 0-60 and a top speed of 196 mph, will anyone even see them showing their love of the environment?
Given the immediate torque of electric power its no wonder the supercar builders have plunged into the E-car and hybrid models. And that’s where we see the top of the “e-excess” in car building. McLaren has the Hybrid Artura with a starting price of $225,000 (the version Car and Driver tested was $237,500 ). But even $237K doesn’t buy the ultimate in “save the environment” green. That badge goes to Ferrari and its SF90 Stradale which starts at $507,000. Granted the credit is only $3,501 but every little bit helps. These are the people that most need US taxpayers help to “save the environment” of course.
PART 2- WHAT ARE THE ALTERNATIVES?
Now, let’s say you are just an average American. Yes, you want to do your part for the environment, but you also have to put (ever more expensive) food on the table for your family. What alternatives are there for you? Fortunately, there are plenty of choices for those who can’t drop a few hundred thousand on an electric Mercedes. And while it won’t get you the cachet of a $7,500 tax credit, many offer a reasonable way to get from point A to point B with gas prices at (as of now) $5.00/gallon.
Cars.com ran an article listing the most fuel efficient cars in the US for 2022. They broke down gas only cars and hybrids. As reflected below, the top 5 get a combined 37 MPG and cost an average of $18,893.
If we look at the Hybrid (Gas – Electric) cars we see that they cost more but get better mileage- 53 average MPG with an average cost of $25,267.
So which is better? Well…as with most things, it depends. The Hybrids cost more than the Gas only cars, but they get better mileage, so where is the trade off? For the “average” driver (one who drives 15,000 miles per year), the cheaper gas only versions probably make sense.
To determine the break-even between gas and hybrids, you would have to drive 29,000 miles per year. At that point, the better mileage of the Hybrids make the monthly costs similar. But for the normal person, not driving that many miles, the gas only versions would seem to make more sense.
CONCLUSION:
What I would love to see someone do is a full carbon cost analysis of one of the uber fancy electric cars to a (say) gas only Honda Civic. In the mid 2000’s the group CNW Marketing Research did an analysis did an analysis of every energy cost of the manufacturing and use of a series of cars (311 models in total). They analyzed thousands of data points from the cost of mining the ore that is used to produce the steel and batteries, to the energy required for the workers to get to the assembly plant, down to the use by the owner. It is a fascinating read albeit almost 500 pages. Ultimately their analysis determined that some “not so friendly” vehicles (like the Hummer H2 – a large SUV) was in total more environmentally friendly than the Honda Accord Hybrid.
While their analysis created quite a furor and some argued against the conclusions, the points they made are valid. If a hybrid electric car requires significant amounts of specialty metals that come from mines in Africa and Asia, then we need to take that into account before claiming that “I care about the environment” because I drive a hybrid. Electric car proponents often ignore the pollution that is created in the manufacturing of their cars (mines in Asia or Africa) or in the driving (electric power plants located elsewhere). Just because it has been essentially “outsourced” doesn’t mean it’s not occurring, it’s just not occurring where you can see it.
Moreover, Congress should do something about the rich fleecing US Taxpayers to buy electric cars that cost several hundred thousand dollars. If only we could find the people who write the tax codes maybe something would be done. But when we are facing record gas prices and Biden Admin officials claim we don't need more oil (yes, that’s the same John Kerry who has an oceanfront estate on Nantucket and hid his sailboat in RI to avoid $500K in MA taxes ) I won’t hold my breath waiting. We’re supposed to just shut up and enjoy $5.00/gallon gas, with all its benefits.