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Discussion Starter · #1 ·
Details are still sketchy, but it sounds like Manchin just agreed on a bill that would extend the $7,500 EV tax credits to manufacturers that are tapped out AND attach a $4k credit for used EVs. Should have details and bill language soon.


So does this change anybody’s mind on EVs? What would you buy if this goes through?
 

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Details are still sketchy, but it sounds like Manchin just agreed on a bill that would extend the $7,500 EV tax credits to manufacturers that are tapped out AND attach a $4k credit for used EVs. Should have details and bill language soon.


So does this change anybody’s mind on EVs? What would you buy if this goes through?
Doesn’t change me at all, EVs still do not fit into my lifestyle unfortunately.
 

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How is this the "Inflation Reduction Act" by raising the prices of EVs by $7500 new and $4000 used? Because you know that sellers will just raise their prices by the tax credit amount, meaning you pay more up front and wait until next year to get your tax credit back.
 

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Discussion Starter · #7 ·
How is this the "Inflation Reduction Act" by raising the prices of EVs by $7500 new and $4000 used? Because you know that sellers will just raise their prices by the tax credit amount, meaning you pay more up front and wait until next year to get your tax credit back.
I’m guessing it will incentivize the creation of EVs that can come under the cap. There’s a lot more than EV credits in it.
 

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Canadian EV inventory was already effectively 0, and the highlighted items above are just going to mean even more of the new EV share gets allocated to US first (e.g. Tesla upping MSRP towards limits if their customers now get a Point-of-Sale incentive), and any Canadian used EVs left get exported to the US.

Hope ya'll enjoy your EVs :D I'll go back to not being able to get one anytime soon,
 

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None are sitting on lots, so why are we spending money to help sell them?
To help increase inflation, just like the bill says... oh wait... its been a while since I took economics class, but usually you fight inflation by increasing taxes and decreasing expenditure, not giving tax incentives and increasing expenditure. Seems like the government always likes to name a bill the opposite of what it actually does, kind of like if a bill has the word "freedom" in it, you know its not reducing government regulations/oversight and quite the opposite.
 

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Two things- I like that it would be applied at the sale rather than tax time

Also it's funny that Tesla basically still wouldn't qualify based on their vehicles costing too much. 55k cap on sedans. 80k cap on suvs.
 

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Two things- I like that it would be applied at the sale rather than tax time

Also it's funny that Tesla basically still wouldn't qualify based on their vehicles costing too much. 55k cap on sedans. 80k cap on suvs.
The Model 3 SR+ would still qualify
 

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How is this the "Inflation Reduction Act" by raising the prices of EVs by $7500 new and $4000 used? Because you know that sellers will just raise their prices by the tax credit amount, meaning you pay more up front and wait until next year to get your tax credit back.
You wouldn't have to wait until tax time anymore- it would be applied directly to the sale now which is a huge draw.
 

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To help increase inflation, just like the bill says... oh wait... its been a while since I took economics class, but usually you fight inflation by increasing taxes and decreasing expenditure, not giving tax incentives and increasing expenditure. Seems like the government always likes to name a bill the opposite of what it actually does, kind of like if a bill has the word "freedom" in it, you know its not reducing government regulations/oversight and quite the opposite.
From what I read elsewhere the bill increases taxes by about 2x as much as it increases spending, so based on standard economic theory it should indeed slow the economy and mitigate inflation. This thread is only talking about the part of the bill that is increasing tax subsidies.
 

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How is this the "Inflation Reduction Act" by raising the prices of EVs by $7500 new and $4000 used? Because you know that sellers will just raise their prices by the tax credit amount, meaning you pay more up front and wait until next year to get your tax credit back.
Precisely. It's an ironclad economic law that subsidies are captured by sellers, not buyers.

See college tuition and medical care.
 
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