As part of the Budget Reconciliation bill, Congressional leadership has proposed an annual car tax of $ 250 on EV drivers and $ 100 on plug-in hybrid electric vehicles (PHEVs). This car tax only targets low- or zero-pollution vehicles. Gas guzzlers get a free pass. If this car tax passes, $ 250 will come out of EV drivers’ pockets every single year, starting as soon as this year. This tax is targeted at EV drivers.
EV drivers already pay more than their fair share in dozens of states. Now, some members of Congress are trying to further punish EV drivers for not buying gasoline. While EV drivers are happy to pay their fair share into the Highway Trust Fund, this is not the solution. Keep reading to better understand the situation.
Why the EV tax is being proposed
Obviously, cars need maintained roads and bridges to get around. The U.S. has historically supported road infrastructure through the Highway Trust Fund (HTF), which is funded through a gas tax that drivers pay at the pump. Currently, the HTF has a deficit. EVs don’t run on gas, so EV drivers don’t pay a gas tax. Because of this, EVs are seen as an easy target in discussions on how to fix the funding gap.
EV opponents make EVs the scapegoat, distracting everyone from finding a real solution to fund our road infrastructure for years to come. EV opponents in Congress falsely claim that this proposed tax would fix the Highway Trust Fund. While this would be a hefty $ 250 out of EV drivers’ wallets every year, the combined revenue from the car tax on EV drivers wouldn’t even make a dent in the Highway Trust Fund.
Why the EV tax is unfair
When you break it down, EVs are only responsible for a tiny fraction of the infrastructure funding gap. The overwhelming majority is due to inflation, increased road infrastructure costs, and increasing efficiency of gas vehicles (higher vehicle efficiency = less gas burned = less gas tax paid). The federal gas tax has not been raised or adjusted for inflation since the 1990s.
EV drivers want to pay their fair share, but this $ 250 annual tax proposal is far beyond a fair share. At the current federal gas tax rate of 18.4 cents per gallon, the average gas-powered light-duty vehicle would have paid only $ 82.25 in federal taxes that year. Taxing EV drivers $ 250 annually is far above that, making EVs more expensive for regular Americans and punishing them for driving a new technology.
Take action
Tell your representatives not to impose this $ 250 annual car tax on EV drivers. Send this message to your friends, neighbors, and anyone else you know with an EV – because if we don’t stop this, EV drivers will see a fresh $ 250 bill from the federal government come tax season.
The post Congress is pushing a punitive tax on EV drivers appeared first on Plug In America.
