Author sees the Senate bill that eliminates eligibility for about 70% of the EVs currently for sale in the US as a victory for the fossil fuel & car dealership lobby.
https://cleantechnica.com/2022/08/08/senate-kills-the-ev-tax…
intercst
5 Likes
I find it enlightening that the media on both sides of the political spectrum are either cheerleading the new law as a major victory or panning it as an inflationary boondoggle. It turns out they are both being disingenuous.
While I have ebbing respect for politicians in general, they can’t all be dumb as doorknobs. In fact, most are likely bright enough to figure out how sweet an angle being a member of Congress is. That means they understand how lousy a deal this new act is, but none are willing to point out how it’s largely an empty promise.
We not only have this twist on the EV portion, but also, as was pointed out yesterday on Metar, that the $2000 “catastrophic” Medicare drug cost cap was only after a $5000 expense (IIRC), so was actually a $7000 cap. Similarly, after waiting period of three years, Medicare will start negotiating up to 20 drug prices over the following few years resulting in price changes in .1% of drugs - yet is being touted as FINALLY Medicare is negotiating drug prices.
I’m sure that, reading the act with a fine-tooth comb and broad knowledge will likely result in similar twists on nearly every bullet point. Not the least of which is that the CGO has said that it will not reduce inflation substantially despite its fancy name.
Jeff
16 Likes
While I have ebbing respect for politicians in general, they can’t all be dumb as doorknobs. In fact, most are likely bright enough to figure out how sweet an angle being a member of Congress is. That means they understand how lousy a deal this new act is, but none are willing to point out how it’s largely an empty promise.
============================================
I totally disagree with your narrow minded take on the Act. Picking on two line items does not equal lousy.
Jaak
4 Likes
Author sees the Senate bill that …
I would comment on this but…what happened to the no posting on legislation not yet signed?
I think that we should be able to discuss this.
But did we change the rules?
Mike
2 Likes
It’s ok to help buy cars for upper income Americans.
Feeding poor people - yeah, we’re trying.
The requirements to get full EV credit is based upon politicians ‘desire’ to establish a US rare earth mining, refining, battery cell production, battery manufacturing plants, and of course, mostly US content in the construction of the car with all using ‘union labor’.
You can get some partial credit though I think for ‘mostly’ US content.
Also, likely half of the larger SUVs, CUVs, will exceed the price point - over $65,000 so won’t qualify for credit either.
Baked in are 5-10c a gallon price increases for fuel and refined products, and probably 20-30% increases in natural gas costs to customers.
t
Medicare will start negotiating up to 20 drug prices over the following few years resulting in price changes in .1% of drugs - yet is being touted as FINALLY Medicare is negotiating drug prices.
OK, well here’s a simple fact: Medicate is FINALLY negotiating some drug prices. To this point the number has been zero, so I take comfort in the maxim that every journey begins with a first step. Social Security covered less than half the country at the beginning, and the Interstate system began with appropriations of 5% of the eventual cost.
That .1% of drugs you mention is a canard; not all drugs are used equally. If they negotiate the most expensive and most used drugs, then the cost effect will be substantially greater. More to the point, once the big hammer comes out, it’s possible (likely?) that Big Pharma will reign in its worst excesses as they calculate how likely it is that the hammer will fall on them. At least I hope so. Generally people run faster when they hear the bear growl.
That means they understand how lousy a deal this new act is, but none are willing to point out how it’s largely an empty promise.
Couldn’t disagree more. It’s a lot more than a fractured legislature has been able to accomplish in a decade (low bar, I know). It has monies to help aid the transition to renewables (and I expect that to help open new domestic production facilities and jobs - or at least I hope.) It begins the process of lowering drug prices. It sets a minimum tax for multibillion dollar multinational corporations which have been paying almost nothing for the privilege for exploiting the “free” market domestically. It has significant nods to public transportation and climate change initiatives, the sorts of things the market can’t seem to address.
There is much to like, and yes, a few things to dislike in this package. It’s far far from perfect, but it is, to come full circle, a STEP in the right direction. We’ve had so few of those in the last several years, I would think it would be applauded that we’re actually trying to do something .
10 Likes