(Secretary of the Treasury) Snow announces tax breaks for hybrid cars

Reuters via Yahoo ^

[HHKrepublican_2]

DETROIT (Reuters) - U.S. Treasury Secretary John Snow, aiming to boost the ailing domestic auto industry and encourage conservation, on Friday outlined details of proposed tax breaks for people who buy hybrid gasoline-electric vehicles. ADVERTISEMENT

At a Ford Motor Co. research center in suburban Detroit, Snow discussed tax policy changes that would give people who buy or lease increasingly popular hybrid cars and trucks a tax credit up to $3,400.

[Living Free in NH]

a tax credit up to $3,400

Well, damn. How about a $6,800 tax credit for those who don't even own a car and take the subway to work every day?

[taxcontrol]

Lets see, $3,400 should just about make up the extra cost of the hybrid and along with the minimal real world gas mileage improvements, just make it just about even.

[stocksthatgoup]

Can you say "Corporate Give-Away"?

[misterrob]

How about outsourcing the production to people who don't need to be paid union wages so as to drive down the costs and make the cars more cost competitive?

[TCats]

As usual, the Gov't bureaucrats are foisting the illusion that Gov't can somehow repeal the laws of basic Economics. I say butt out and let the market sort this thing out.

[mewzilla]

Note to Sec. Snow: When they save money and gas, we'll look at them.

[RadioAstronomer]

I park every day next to a Prius at work. We both say the same thing as we walk out to our cars - "I am glad I am driving what I drive". LOL!

My car is a 2005 Vette. Drives like a dream, but he gets better gas mileage. (I think I got the better end of the deal) :-)

[Warren_Piece]

I don't get it. My Scion xB gets better gas mileage than a Ford Escape Hybrid. Where's my tax break?

[Muleteam1]

I haven't recently looked at any of the hybrid cars but in the past the car manufacturers subscribed to the policy, "If you want economy, you had better be ready to pay big bucks for it." Economy should start at the asembly line, not on the IRS 1040. Not to say that being able to share your vehicle cost with all taxpaying Americans is not a good deal.

Muleteam1

[SirLinksalot]

Scientific Question : In the overall scheme of things -- DOES THE HYBRID CAR REALLY SAVE ENERGY ANYWAY ?

Anyone ??

[DaveyB]

What is the constitutional role for taxing one product higher than another to favor a market response? - And don't tell me about the interstate commerce act - Hybrids aren't safe on an interstate!

[keat]

Hybrid cars run on gasoline, they do not and will not "save" the environment.

The actual increase in fuel economy over a similarly sized and stripped down sub-compact is minimal in mixed driving and non-existent in primarily highway driving.

The premium price paid for Hybrids is not even close to recovered in operating costs.

Hybrid busses and taxi's in urban use probably have a payback, as long as the purchase price is not inflated.

Battery disposal and recycling issues have been sugarcoated and not fully considered.

Asking me to subsidize somebody's "feel-good" politically correct vehicle is wrong.

When Detroit and Tokyo roll out huge gas-guzzling Hybrid SUV's next year, the joke will be on the taxpayers.

[TCats]

Don't really think so and especially in light of recent articles disclosing the 'Real World' gas mileage of some hybrids - Much lower than what the EPA stats on the sticker showed.

[RadioAstronomer]

If you could get a hydrogen fuel cell/solar panel car to work - then you would have something. :-)

[keat]

Scientific Question

I got flamed for pointing it out once but I know what I'm talking about. Hybrids only recover energy during deceleration and braking. They generally run on electric power only during acceleration from a near or dead stop.

Ar cruising speed, they run on gas.

So, say your in a little Honda Civic with a conventional power plant. That Hybrid Civic that passes you in the carpool lane is:

(a) Getting less gas mileage than you (Due to the heavy battery it's hauling)

(b)Polluting more that you (See above)

(c) Costing more to own than your car (Due to inflated purchase price)

(d) Now possibly qualifying for a huge tax break.

In stop and go traffic there is an increase in fuel economy and a decrease in emissions but, what the real numbers are, will never be widely published.

[Redbob]

"How about a $6,800 tax credit for those who don't even own a car and take the subway to work every day?"

What, the current government subsidies on your daily ride aren't enough?

How many people do you suppose would ride the subway daily if the subways had to break even or show a profit?
But you don't mind your daily handout equivalent to what? 100%? of your out-of-pocket cost?

[Redbob]

"My car is a 2005 Vette. Drives like a dream, but he gets better gas mileage. (I think I got the better end of the deal) :-)"

And you'll know for SURE you got the better deal when it's time for him to replace his batteries!

Ask him sometime how many miles he'll have to put on his silly little contraption before the gas savings pays for the cost premium he paid for it.
Hint: current estimates are over 100,000 miles, WITHOUT considering the cost of replacement batteries.

[DaveyB]

I carry eight passengers to church in my minivan - I get about 200 miles / (person gallon). That beats a hybrids milage and I have cup holders

[keat]

What, the current government subsidies on your daily ride aren't enough?

Man, a daily subway rider from NH? Some trick. I don't think LFinNH was talking about themselves.

The point you made is good but the attack premature.