Electric Car Sales Fall for First Time After China Cuts Subsidy
Electric vehicles are a drain on the budget. They need subsidies in order to get sold. As long as we are only talking about one or two percent Electric Vehicles, the subsidies are a budget item to be dealt with. As soon as you go double-digit, a double whammy hammers you. Subsidies will balloon to grotesque proportions so this is not going to be your innocuous little budget item, it’s one of the big elephants in the room. But you also miss out on a lot of foregone taxation (hidden subsidies) because thise ICE tax-paying vehicles have been replaced with EV tax munchers. Every economy has its breaking point but there are decisions to be made. Who should have a car and who should walk? What welfare payments to cut in order to sustain EV’s? Or by how much to raise taxes in order to feed the insatiable monster? Knowing politicians I am not sure EV’s will be their friends for long anymore.
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