A New York Times report today details an issues that should be an issue on this year’s election. Apparently, although there has been some attempt to give tax credits to consumers that purchase fuel-efficient hybrid automobiles but of course, lobbyists from American automakers have worked to make sure that foreign car makers aren’t rewarded for their attempts to actually create fuel efficient cars.
THE first thing to understand about the hybrid tax credit is that
it was never really intended to reduce oil imports from the Middle East
or slow the effects of global warming. The credit was created to prop up Detroit while giving conservation a nod.
Last summer, when Congress was completing an energy bill, Toyota’s and Honda’s
hybrids were already winning people over in the marketplace, and it was
clear that any tax credit would go overwhelmingly to buyers of Japanese
cars. So members of Congress, with help from Detroit’s lobbyists, came
up with an ingenious solution. They created a cap, a maximum number of
hybrids that any single manufacturer could
sell — 60,000 — before a clock started ticking, causing the credits for
that carmaker to begin disappearing two quarters later.
Detriot isn’t keeping up with consumer demands so they wanted to be sure that tax credits don’t price them completely out of the market.
This is exactly the kind of nonsense tax policy that needs to be fixed.