The first 200,000 electric cars from each manufacturer are eligible for the credit. By implementing a $50,000 cutoff, Tesla could then “save” their remaining credits for their future $35,000 Model 3 that is set to come out in a couple of years. The current Model S has already gained traction in the market so why not save the credits for when they can make a bigger impact when the Model 3 comes to market? It is currently out of Tesla's hands at the moment and would have to be changed with federal legislation.
The democrats have suggested upping the tax credit to $10,000. I wonder if democrats and republicans could agree on a bill that said that only cars under $50,000 were eligible but that the credit would be $10,000.
How about an informal poll? If you had to choose today between A] the status quo or B] the above bill, what would you choose? (I know many would prefer option C] remove the credit altogether, but obviously that would not get past the Senate or the President's desk. I'm sure others would suggest option D] wait until we get a conservative President but polls suggest there is a significant chance Hillary might stop that from happening.)
What do you guys think?
I think you're a moron.
There shouldn't be any tax credits. Period. Tesla, Toyota, Ford, Gubmint Motors (f-em). Doesn't matter.
The only legitimate role of taxation is to raise necessary revenue to fund the legitimate functions of the government.
It is not legitimate to use the tax code to influence behavior.