LA Times Editorial Board Comes Out Against Prop 30, Taxing The Rich To Subsidize EVs

A slight bit of sanity. Also, nowhere in this piece do the members of the LA Times editorial board mention if they’ve bought EVs themselves

Endorsement: No on Proposition 30

There is probably no climate program in California that is more urgent than the transition to zero-emission vehicles. Transportation is the state’s largest source of planet-warming and health-damaging emissions by far. We will not meet our obligations to reduce pollution unless we move quickly to build the charging infrastructure and replace the tens of millions of gas- and diesel-fueled vehicles on our roads with electric cars, trucks, buses and other zero-emission models. But they remain too expensive and out of reach for many residents and businesses.

Of course, the big problem here is that it’s not voluntary, the Elites are forcing the citizens to engage in this scheme. But, don’t cry for them, they vote Democrat, so, they get the authoritarianism they asked for

The question, then, is how to pay for this estimated $150-billion clean-vehicle transformation?

Proposition 30 on the November ballot would do it by raising taxes on the rich to pay for electric vehicles and charging stations. While it may be tempting to put the burden on the rich — again — for one of California’s top priorities, voters should say no. Proposition 30 has too many flaws. It’s bankrolled by one special interest and it doubles down on an unsustainable funding model.

Yeah, another tax the rich scheme, which would add another 1.75% on top for those making $2 million or more. It doesn’t seem to go after businesses, though, not that I can see.

California already has the highest state income tax rate, at 13.3%, and voters have already raised taxes on the wealthiest residents to pay for education and mental health services. Proposition 30 would push the top-earner rate to 15.05%, which is much higher than other states, most of which have income tax rates in the single digits. The state’s dependence on wealthy residents’ income, which is often tied to investments and the stock market, creates tremendous instability in the budget. Revenues sharply rise and fall with Wall Street, leading to feast-or-famine cycles. It doesn’t make sense to pin another priority on such a volatile funding stream. Proposition 30 could also drive investors who fund high-risk technologies out of the state.

Wait, it would drive investors out even more? Huh. It would also drive out business owners and lots of rich folks. More of them.

There’s some concern that Proposition 30, which would generate between $3 billion and $5 billion a year, could send EV prices higher. Because of the supply shortages affecting the car market recently, some economists warn that an influx of additional vehicle incentive money could be pocketed by car dealers and manufacturers through higher prices. Proponents argue those concerns should fade as automakers ramp up production to comply with requirements that manufacturers sell increasing percentages of zero-emission vehicles, starting with 35% in 2026 of new car sales until they reach 100% by 2035.

For one thing, if there are subsidies the price of goods will go up, along with discounts disappearing. For another, there may just be a new paradigm in vehicle sales post-COVID, where there are not as many cars on lots. We’re hearing it may end up being that dealers have a 10 day supply, instead of months and months worth of cars. Don’t have what you want? Wait for something in shipping or build status. If they think they’re going to get those billions, well, look at how well the cap and trade scheme is working. And the marijuana scheme. Both are seeing way, way less than anticipated in tax revenue. But, hey, this is the state which started a bullet train scheme, which not many would ride. The initial cost was $33 billion. It’s now over $105 billion. And still not operational.

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