New Bill in Senate to Kill EV Tax Credit + $1000 tax on every new EV

[savethemanual]

https://www.reuters.com/business/au...tax-new-ev-sales-pay-road-repairs-2025-02-12/

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[webfootdawg]

Not great, but I don't disagree the Feds and states need to find a way to make up for declining gas tax revenue.

 

[savethemanual]

Yeah, the Fed gas tax is going to need to be figured out for sure. I think it should be eliminated completely & replaced with a tax on all vehicles based on how many miles driven annually. This proposal of paying lifetime of gas tax upfront isn't going to work. Many states are already charging an extra fee for EV's with their annual plate renewal.

 

[SANZC02]

I understand the road repairs and the $1000 is not crazy. The federal gas tax is 18.4 cents a gallon, that is like driving 108k miles at 20 miles a gallon.

Now let’s chip into the estimated 20 billion annually provided to the fossil fuel industries who are raking in huge profits.

2023 profit of just the top 3 oil companies
Exxon 36 billion
Shell 28 billion
Chevron 21 billion

 

[Donald Stanfield]

It's fair to pay the taxes you would otherwise pay if you drove an ICE.

 

[savethemanual]

Agreed, an EV owner needs to pay their fair share of Fed road taxes....but why should it all be paid up front? Many lease, and only have the vehicle for 3 yrs or so.

 

[SANZC02]

Yeah, the Fed gas tax is going to need to be figured out for sure. I think it should be eliminated completely & replaced with a tax on all vehicles based on how many miles driven annually. This proposal of paying lifetime of gas tax upfront isn't going to work. Many states are already charging an extra fee for EV's with their annual plate renewal.

Paying up front is rough but in reality some of that would probably be recovered in the used car market.

A fee based on miles would be fare but a nightmare to maintain. Maybe require the states to collect a federal road tax at registration. The challenge with all of this is fair distribution. With the fuel tax people pay the tax where they purchase fuel, moving to a registration fee federally maybe can be fair shared but regionally a lot of states would lose revenue they currently get from travelers.

 

[NY_Rob]

Yeah, the Fed gas tax is going to need to be figured out for sure. I think it should be eliminated completely & replaced with a tax on all vehicles based on how many miles driven annually.

As I have been told in the past, not every state requires annual inspections where your odometer is read and forwarded to the state. With that in mind, charging by miles driven would prove difficult if not impossible.

According to Google AI:
Alaska, Arkansas, Florida, Iowa, Michigan, Minnesota, Mississippi, Montana, North Dakota, South Carolina, South Dakota, Washington, and Wyoming do not require regular vehicle inspections.

 

[sub]

Both gas and electric vehicles benefit from the roads equally. It is totally fair that they both fund it equally. But $1000 point of sale tax on one and $0 on the other is not equal. I suggest that they add that $1000 tax to all vehicles - both gas or EV - and then stop using gas tax to pay for roads.

And then increase the the gas tax 10x and use that money to clean up the damage that burning that gas causes.

 

[Donald Stanfield]

As I have been told in the past, not every state requires annual inspections where your odometer is read and forwarded to the state. With that in mind, charging by miles driven would prove difficult if not impossible.

According to Google AI:
Alaska, Arkansas, Florida, Iowa, Michigan, Minnesota, Mississippi, Montana, North Dakota, South Carolina, South Dakota, Washington, and Wyoming do not require regular vehicle inspections.

Tennessee is missing from that list. We do not require inspections.

 

[TexasBob]

If the world was not insanely partisan and driven by misinformation, the Federal gov would pass a law that required the states to collect an annual road use fee for EVs (just like they do for gasoline excise taxes now) equivalent to that state + fed tax on 1,000 gallons of gasoline (not perfect but good enough) of which the state would get its share and the fed would get its share. Instead, red states are trying to make EVs more expensive and blue states are trying to make them less expensive.

 

[zefram47]

$1000 claimed equivalent to 10 years of gas tax. Even *if* that number were justifiable and I don't believe it is, the big problem is forcing the first owner to pay that all up front. Most people don't keep vehicles for 10 years. Most states already collect an additional annual fee for registering EVs, some far more than $100/yr. If you're really going to make this play, add it to registration and make the states remit some portion of it to the feds.

 

[TexasBob]

$1000 claimed equivalent to 10 years of gas tax. Even *if* that number were justifiable and I don't believe it is, the big problem is forcing the first owner to pay that all up front. Most people don't keep vehicles for 10 years. Most states already collect an additional annual fee for registering EVs, some far more than $100/yr. If you're really going to make this play, add it to registration and make the states remit some portion of it to the feds.

$1000 = 5435 gallons of fuel (18.4 cents fed tax) = 543.5 a year. Average fuel efficiency (EPA 2023 model year) is 27.1 or 14,728 miles a year. According to USBTS via KBB, the average miles per year was "14,489 in 2022." So it is a pretty fair number for the first 10 years and since the average vehicle last over 20 years, it is actually a pretty nice discount on the total lifecycle.

As you say, however, the lump sum element it difficult to manage.

 

[savethemanual]

$1000 = 5435 gallons of fuel (18.4 cents fed tax) = 543.5 a year. Average fuel efficiency (EPA 2023 model year) is 27.1 or 14,728 miles a year. According to USBTS via KBB, the average miles per year was "14,489 in 2022." So it is a pretty fair number for the first 10 years and since the average vehicle last over 20 years, it is actually a pretty nice discount on the total lifecycle.

As you say, however, the lump sum element it difficult to manage.

Yes, but why should the first owner pay all of that when there will be multiple owners throughout the vehicles life?

Every vehicle has to be registered annually, simply add the Fed tax with each annual registration for all vehicles then the fed gas tax can be deleted.

 

[TexasBob]

Yes, but why should the first owner pay all of that when there will be multiple owners throughout the vehicles life?

Every vehicle has to be registered annually, simply add the Fed tax with each annual registration for all vehicles then the fed gas tax can be deleted.

I agree, see my post above about how states should collect this annually as part of registration.

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