ajdelange
Well-Known Member
- First Name
- A. J.
- Joined
- Aug 1, 2019
- Threads
- 9
- Messages
- 2,883
- Reaction score
- 2,317
- Location
- Virginia/Quebec
- Vehicles
- Tesla XLR+2019, Lexus, Landcruiser, R1T
- Occupation
- EE Retired
Nope. The purpose of the tax incentive is to allow the manufacturer to charge premium prices soothing the customer with the reassurance that he will recover the money from Uncle Sam. This, of course, means higher profit margin for the manufacturer and the presumption is that he will put this into R&D, plant expansion etc. resulting, ultimately, in a vehicle than can be sold at a more modest price without breaking the OEM. Thus the intent is exactly opposite of what you assume: incentivize rich people to pay the premium price. The theory is that eventually the government's layout will prove to be a good investment as the company will survive to produce decent cars for the rest of us at a price we can afford. The benefit of the original plan is to the OEM. $7500 is chump change to a 1%-er.The purpose of tax credits is to incentivize adoption by people who couldn't otherwise afford it, not to reward you for having expensive tastes.
If you continue the discount past the point where more reasonably priced cars are available that's just another handout to the people buying the cars. They accrue most of the benefit, of course, but presumably society as a whole eventually benefits too.
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