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| I’d hazard a guess that people are saying if the government is giving us some of our own money back, a subsidy, to buy an electric vehicle, we will also need to support the required upgrades to the electric grid to support them.
That means we can, and will, pay for these upgrades in one of two ways. If the government doesn’t give our money to the electric companies, in the form of a subsidy, we will have to pay for it directly in the form of much higher electrical rates. No one wants to pay the extremely high electrical rates that would cover the cost of these upgrades. Therefore, most people will want the government to pay for it by giving these companies subsidies instead. Most won’t realize that these subsidies aren’t free to the public, the money comes from taxes. The effect of this way is we all get to drive around happily thinking we are saving the environment on someone else’s dime.
Actually there is a third way. The government can give them our money in the form of a subsidy and the company can also charge a higher electrical rate. I suspect this is the route we take because we will feel better if we bear some of the cost of saving the environment.
The good news is that way a person can invest their money in electric companies and likely get a decent return due to record profits. These investment returns will prove useful to help pay the tax bill.
I’m only partially kidding. There might be some truth to the above.
Edited by havin’funfarming 5/28/2021 08:10
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Electric vehicles and road tax
