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Transportation Republicans The Almighty Buck

Republicans In Congress Want a Flat $200 Annual EV Tax (arstechnica.com) 196

New submitter LDA6502 writes: The Republican chairman of the House Transportation and Infrastructure Committee is proposing a new annual federal vehicle registration fee of $200 for full EVs, $100 for hybrid EVs, and $20 for combustion vehicles. The tax would be tied to inflation, would be collected by the states, and would expire in 2035. Critics of the proposal note that it could result in low mileage EVs paying a far higher tax rate than heavy ICE trucks and SUVs. Ars Technica notes that the bill "exempts commercial vehicles, which should see a rush from tax avoiders to register their vehicles under their businesses [...]." Farm vehicles will also be exempt from the tax.

"The Eno Center for Transportation calculates that this new tax will contribute an extra $110 billion to the highway Trust Fund by 2035 but that cuts to other taxes and more spending mean that the fund will still be $222 billion short of its commitments -- assuming that this added fee doesn't further dampen EV adoption in the U.S., that is."

Republicans In Congress Want a Flat $200 Annual EV Tax

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  • by Smonster ( 2884001 ) on Wednesday April 30, 2025 @08:34PM (#65343437)
    Just like the tariffs, just another regressive tax proposal brought to you by republicans. And it favors the fossil fuel industry over alternative energy to boot. Pure republicanism. Just tax the wealthiest’s income at 50%, remove the income cap rate on the SS taxes so all of the wealthy’s income is subject to the tax like the rest of us, full fund the IRS to go after tax cheats, and leave the middle class and working poor alone you greedy self serving SOBs. That all by itself would solve most of the tax revenue issues.
    • Re: (Score:3, Insightful)

      by RazorSharp ( 1418697 )

      Just tax the wealthiest’s income at 50%

      That's far too low. Tax brackets should function to effectively prevent anyone from obtaining the type of wealth that the wealthiest Americans enjoy. The highest tax bracket should be a 99% tax.

      The reason most people agree with Republicans that this is unfair is because they don't actually understand how tax brackets work. It doesn't mean that you get taxed 99% on all of your income. Each bracket represents a certain portion of your income (if you're lucky enough to have income that exceeds the lowest brack

      • I think the best would be to just take the top 1%, seize their property and send them to Siberia. Oh, this is the US, well, I'm sure there are some empty places in the US where you could put some unwanted people.
        Do that every few years and you will have paradise.

        When CEOs can't just give themselves and all the other executives absurd salaries and bonuses, all of a sudden paying their employees decent salaries with decent benefits makes sense. Investing in R&D makes sense. Long term thinking makes sense.

        Not really, the stock holders will still want their returns and the stock holders will be moving to some other country that would not have this law.

        • by martin-boundary ( 547041 ) on Wednesday April 30, 2025 @11:16PM (#65343673)
          There's no need to send people to Siberia (Trump would have to beg Putin for access).

          Take Musk, for example, whose current wealth is ~330B. If you confiscated 99.9999% of it in a one time tax, he would be left with ~330k in wealth, which is enough to live on comfortably if he also gets a job like the rest of us.

          • There's no need to send people to Siberia (Trump would have to beg Putin for access).

            I am sure there are some empty places in the US that would be suitable for this purpose.

            Take Musk, for example, whose current wealth is ~330B. If you confiscated 99.9999% of it in a one time tax, he would be left with ~330k in wealth, which is enough to live on comfortably if he also gets a job like the rest of us.

            Or he would just leave before the law went into effect. I know I would. Why the hell would I stay in a country that threatened to take most my money, then evict me from my house (houses usually cost more than 330k) for the crime of having too much money legally?

            So, yeah, I would not approve of that, even if the proposal would be changed so there was no risk to me and it only applied to the real bourgeoisie. My country wa

            • Presumably the one time tax would be enacted with immediate effect and if he tried to run away to another country he might simply be prosecuted for evasion.

              I assume this could be facilitated with an executive order, since it would be stupid to give people time to flee the country with very large amounts of their own personal wealth. Although, with a sufficiently reduced state apparatus, that might not be very practical to police effectively.

              I don't think you have to worry that this will happen in the ne

              • The good thing is that politicians are rich, so they would not want to do that to themselves and their friends.
                I am sure people like Musk could make at least some of the money back, but it would be after leaving the US. The socialist-US, much like the USSR would eventually run out of other people's money and collapse.

                • It depends how scared the politicians are. Money alone doesn't protect your extended family or your possessions from a determined foe, especially one with nothing to lose and a grudge.

                  I would also suggest that Musk, if "reduced" to an ordinary person's circumstances, would find it difficult to recreate that wealth through his own means. His reputation as someone who knows what he's doing has taken a very public beating in recent years, even Tesla has been looking to get rid of him. [cnn.com] That's not what a heal

                  • I would also suggest that Musk, if "reduced" to an ordinary person's circumstances, would find it difficult to recreate that wealth through his own means.

                    He still has friends in high places and abilities. I don't think it would take him too long to go back to at least a billion.
                    Especially since others would likely be similarly "reduced" and looking for ways to rebuild what they lost in another country. I am also sure that multiple countries would want them and at least offer tax breaks if not even subsidies.

                    I do not live in the US, so I would not be voting there anyway, but if something like that happened in my country, those politicians would be on a perman

      • That was done in Sweden:

        https://freedomandprosperity.o... [freedomandprosperity.org]

        It didn't last.

    • So much for the party of small government, no new taxes, and Retire All Government Employees. They just want more power and more money.
    • by HiThere ( 15173 )

      I don't know the details about this tax, but a vehicle tax is reasonable. Roads need to be paid for, and a gas tax it's the way to do it as more and more vehicles become electric.

      • by DarkOx ( 621550 )

        The gas tax was a 'good' solution because it reflected use. The more gas you used either indicated you did more driving or likely were driving something heavier.

        Now it is true that in space of passenger cars vs commerical trucks and what not the amount of extra wear on road ways your SUV creates vs a Geo Metro or something is marginal however. But hey consider the bigger gas tax burden a pressure to cut your carbon emissions. My point is in principle gas taxes at least when the money is earmarked for driv

    • by ukoda ( 537183 )
      Asking EV owners to pay costs related to roading is fair, but this proposal is not. The charges should be based on mileage and axle weight and be the same for all vehicles. Where I live it is almost that way, BEVs pay road user charges at under the same scheme used for diesel vehicles i.e. based on mileage.
      • by markdavis ( 642305 ) on Thursday May 01, 2025 @01:35AM (#65343807)

        >"Asking EV owners to pay costs related to roading is fair, but this proposal is not. The charges should be based on mileage and axle weight and be the same for all vehicles. Where I live it is almost that way, BEVs pay road user charges at under the same scheme used for diesel vehicles i.e. based on mileage."

        Bingo.

        The problem is that there is no way they will implement this without being horribly creepy and invasive. Virginia is an example. They slapped this large registration tax fee on EV's because of lack of gas tax and made everyone pay the "average Virginian travel" mileage of 11,000 miles. Well, what about people like me who drive only 1,800 miles? Too F****ING bad! They end up paying tremendously more.

        So they implemented a scheme where you could sign up to put a F***ING GPS-tracker in your EV, CONTINUOUSLY, that monitors your movements, acceleration, speed, etc. AND link that to your phone. If you do that, then you can pay based on actual annual mileage. And did this with some third-party that "promises" not to abuse all that unnecessary data (yeah right).

        Now you might be thinking, VA has a state inspection where they ALREADY gather the odometer reading and ALREADY have to key it into a State system. So why not just use that? Well, isn't that a very good question. I asked that question and got the response "unfortunately that is not an option." (And this invasive scheme was courtesy of a Democrat legislature, in case people want to continuously make all this about Republicans.)

  • by Entrope ( 68843 ) on Wednesday April 30, 2025 @08:37PM (#65343443) Homepage

    a rush from tax avoiders to register their vehicles under their businesses

    The word they were looking for is "evaders", not "avoiders". Personal use of a "company" vehicle has been a red flag that gets IRS audit attention for more than 50 years, and it got stepped up [automotive-fleet.com] more recently. Anybody trying that "one weird trick" better have really good mileage and expense logs to back up their tax claims.

    • by dirk ( 87083 )

      That article is 12 years old. Today, the IRS is a shell of itself since they cut everything Biden did to expand it. Sure, if you get audited you might get busted, but the chance of getting busted is incredibly slim at this point.

    • by rsilvergun ( 571051 ) on Wednesday April 30, 2025 @09:11PM (#65343497)
      You can do basically anything right now. I have some of the worst luck of any human being alive so I don't think I would chance it but I know people who are just doing whatever and they've been getting away with it for years with the cuts before Elon musk and the dog got to work.

      Firing all those workers and refusing to implement the laws they are legally required to have saved about $150 billion. But the cuts to the IRS is going to cost about 1 trillion. Not billion, trillion with a t.

      Of course that's the whole point but still.

      I wouldn't be surprised though if in a year or two the IRS doesn't get some funding to go after low-level tax dodgers. It won't bring in very much money but it makes good television to have the IRS going around shaking down small time taxpayers instead of the big billionaires. It's a good way to make everybody fear paying taxes instead of looking at it as a positive good where you're paying for civilization.
      • The IRS audits low-income tax filers because that's where the money is. Middle income filers generally just pay the right amount, and high-income filers hire accountants to give them every legal advantage and to ensure they can pass an (expected) audit.

        Trump was routinely audited before he ran for office - funny thing is, he never had a problem - it just took a long time to do each audit. (If he was caught cheating on his taxes, we would have heard about it in 2016, but we didn't)

        • I mean you have Google you can literally look it up in 2 seconds flat. Maybe 2 minutes if you've never bothered to learn how Google works. High income specially ultra high income taxpayers are where all the money is at when it comes to audits.

          The IRS audits poor people because the Democrats are reckless and incompetent and I say that as a member of the Democratic party. So years ago we got out maneuvered by the Republicans and they put a rider into one of the bills that had the past to keep the countrie
  • so the federal trumps the state and I just need to pay the fed. Ok I will take the $20/year only

  • Hypocrites. (Score:5, Insightful)

    by Gravis Zero ( 934156 ) on Wednesday April 30, 2025 @08:45PM (#65343457)

    If we're going to be taxing damage done then why fuck aren't were taxing pollution? Also, why tax EVs when it's heavy trucks that do the most damage? Once again, Republicans are acting in bad faith.

    Tax based on remediation costs, not just to the road but also the environment and STOP SUBSIDIZING THE TRUCKING INDUSTRY.

    I keep hearing about how "the government shouldn't be picking winners and losers" and how important the "free market" from Republicans but then they ooze hypocrisy, EVERY FUCKING TIME.

    "You can't do that, it will destroy the economy." - every far-right dipshit
    Hey, dipshit and thanks for your lack of thinking. Not all policies need to be implemented in an all-or-nothing fashion but can instead be ramped up to provide people time to adapt.

    • ICE vehicles get tax breaks for doing "road maintenance"—their smoke helpfully tars the roads. EVs? Just freeloaders rubbing the asphalt raw.

    • You seem to think trucks don't pay taxes

      From 2021

      A typical 5-axle truck pays $4,454 in annual federal diesel and heavy-vehicle use taxes alone, whereas a car pays $93 in annual federal gas taxes on average. In other words, trucks already pay 48 times more in federal highway user fees than do cars

      That's from a trucking lobby group opposing a 25c/mile tax, arguing it would cost truckers earning $53k per year an average of $25k in additional taxes

      Trucks already pay taxes. Granted, they do more than 48x the damage compared to a car.
      The trucking industry is core to the rest of the economy. Goods need to be transported, everywhere. Especially food. Trains aren't going to deliver stock to your local supermarket.

      • You seem to think trucks don't pay taxes

        From 2021

        A typical 5-axle truck pays $4,454 in annual federal diesel and heavy-vehicle use taxes alone, whereas a car pays $93 in annual federal gas taxes on average. In other words, trucks already pay 48 times more in federal highway user fees than do cars

        That's from a trucking lobby group opposing a 25c/mile tax, arguing it would cost truckers earning $53k per year an average of $25k in additional taxes

        Trucks already pay taxes. Granted, they do more than 48x the damage compared to a car.
        The trucking industry is core to the rest of the economy. Goods need to be transported, everywhere. Especially food. Trains aren't going to deliver stock to your local supermarket.

        You seem to think trucks don't pay taxes

        Incorrect. I think they don't pay enough taxes.

        Trucks already pay taxes. Granted, they do more than 48x the damage compared to a car.

        45x the tax is almost nothing when you realize they do 37,000 times the damage. [wikipedia.org]

        The fourth power law was made in the 1950s, we aren't breaking new ground here.

        That's from a trucking lobby group opposing a 25c/mile tax, arguing it would cost truckers earning $53k per year an average of $25k in additional taxes

        Do they not believe in the free market? Are they Marxists that want to do away with free enterprise? According to the theory of free market capitalism, the market will self-correct. However, I'm sure a lot of business will be moved to using trains which are more environmentally friendly, so it's a win for

  • by rsilvergun ( 571051 ) on Wednesday April 30, 2025 @08:45PM (#65343459)
    Basically they want a nice big fat regressive tax for working Americans to pay so they can offset the additional $5 trillion in tax cuts for billionaires they want.

    They gave out so much money to billionaires during covid, somewhere around 12 trillion on top of the 63 trillion we had given them in the last 40 years, that the bond market is starting to get spooked. So at this point if they want more of your money to go to billionaires they need to take it from you directly.

    I don't think they're planning on having real elections anymore. It won't be anything as dramatic as what they do in Russia let alone North Korea. I think their plan is just to use classic voter suppression tactics to make certain demographics unable to vote. Basically extremely long lines on election day, and challenging voter registrations and signatures.

    If you're one of those kind of people that makes a plan you'll still be able to vote but your vote won't matter because so many of your neighbors vote casually and it's easy to stop them. And with gerrymandering maps and demographics and Big Data it's easy to figure out which voters you need to stop and which ones you need to let vote.

    I suspect when people's taxes double or triple in the next few years they will notice it but by then it's going to be too late
  • Virginia already does this for hybrids and highly-efficient 4-cylinder cars and has for years.

  • Similar article on Electrek points out that the revenue raised would be equivalent to a 1/2-cent-per-gallon gas tax increase (a tax which hasn't been raised in over 30 years).

    Remember when gasoline was $1.20/gallon? Inflation has eroded the dollar by ~120% since then, FWIW.

    https://electrek.co/2025/04/30... [electrek.co]

    • by dfghjk ( 711126 )

      It's not about generating more tax revenue, it's about hurting the right people. It's about playing to the base.

  • Until recently, EVs were exempt from road user charges, but in the past couple of years they have been phased in.

    Basically, for petrol vehicles the taxes are built into the fuel costs - but because diesel vehicles are used a lot for non-taxable purposes (eg farm use off of public roads), there is no road user charges on diesel fuel. Instead, NZ has the concept of a Road User Charge fee that you have to buy per 1000KM of usage on the public road - the fee varies depending on type of vehicle and weight of ve

    • Diesel is tax-free because diesel vehicles are charged higher rates based on GVM

      It's only a matter of time before petrol is tax free and everyone pays RUC
      They should update the weight classes though, to encourage smaller vehicles that damage the road less.
      Like move the 3500kg class down to 3000kg. That would put large SUV's in the higher bracket, while keeping most cars in the lowest.

      • by ukoda ( 537183 )
        I think the weight limit is not a priority, it should be focused on moving petrol vehicles to same system so everyone is paying the same way. The weirdness in the NZ system is PHEV paying 50% rate because there is no way of telling if their mileage was on petrol or electricity. Bringing petrol users under the system removes that weirdness.
        • Yes, that partial RUC charge for PHEV means if you always drive in EV range, you pay less road tax than everyone else.

  • by Nkwe ( 604125 ) on Wednesday April 30, 2025 @09:28PM (#65343513)

    Since usage damage to roads is directly connected to vehicle weight, why not eliminate the fuel tax and replace it with a pure weight mile tax? Meaning that you pay a cost per mile driven, per pound of gross vehicle weight. Odometers would be checked during annual or biannual vehicle inspections, and the tax would be assessed as part of vehicle registration.

    The state of Oregon has a version of this for EVs currently. You can either pay an EV registration surcharge or you can opt to pay per mile. Last time I checked, if you drive less than about 6,000 miles a year, the pay per mile option was cheaper. If you only drive in Oregon, you can use the odometer, if you drive out of state and don't want to pay for non-Oregon miles, you sign up with a tracking service that monitors if you are driving in or out of state.

    We already do a version of this for big trucks

    Yes, there would be privacy concerns with various implementations of a weight mile tax in cases where the tax rate might vary based on where you were -- such system would require tracking. But if you drive around with a cell phone, you are being currently being tracked, and many (most?) modern cars are already collecting and reporting location information.

    A weight mile tax (as a replacement for all other fuel or other "special" vehicle class based taxes), would be fair and appropriately spread the cost of road maintenance out to those who use the roads. It eliminates politics about fuel sources (at least with respect to taxing for road maintenance).

    • Since usage damage to roads is directly connected to vehicle weight, why not eliminate the fuel tax and replace it with a pure weight mile tax? Meaning that you pay a cost per mile driven, per pound of gross vehicle weight. Odometers would be checked during annual or biannual vehicle inspections, and the tax would be assessed as part of vehicle registration.

      Thankfully vehicle inspections are not a thing in many US states. There is no evidence they have measurable impacts on road safety.

      https://www.gao.gov/assets/gao... [gao.gov]

      The state of Oregon has a version of this for EVs currently. You can either pay an EV registration surcharge or you can opt to pay per mile. Last time I checked, if you drive less than about 6,000 miles a year, the pay per mile option was cheaper. If you only drive in Oregon, you can use the odometer, if you drive out of state and don't want to pay for non-Oregon miles, you sign up with a tracking service that monitors if you are driving in or out of state.

      No thanks.

      Yes, there would be privacy concerns with various implementations of a weight mile tax in cases where the tax rate might vary based on where you were -- such system would require tracking. But if you drive around with a cell phone, you are being currently being tracked, and many (most?) modern cars are already collecting and reporting location information.

      I don't agree with or support the contention because there is already one hole below the water line filling up the boat this somehow magically serves as an excuse for drilling more holes below the water line and ignoring the obvious consequences.

      People can elect to leave their phones at home or turn off cellular radios. They can buy

      • by Nkwe ( 604125 )

        I see no reason such taxes need be fair or in any useful way reflect cost of individual contributions to road wear.

        From this comment and your others, I see we significantly disagree, and that's okay. I am curious however, if you don't feel that the cost for road maintenance should be proportionality paid for by those causing use/damage to the roads, how do you feel road maintenance should be paid for?

  • This along with the ever rising costs to acquire, maintain, and insure cars will drive the middle class out being able to afford a car.

    I believe it is going to happen gradually over the next 10-15 years starting with the lower middle class, and progressing to the middle class.

    Will we be become like India/Indonesia/Vietnam with tons of electric bikes, scooters and motorcycles?

    Will the republicans require electric bikes to be registered like motorcycles so they can be taxed for having an electric motor?

  • by Mirnotoriety ( 10462951 ) on Wednesday April 30, 2025 @09:48PM (#65343539)
    President Musk could have stopped this /s
    • President Musk could have stopped this /s

      I know you're just trying to be funny, but I can't imagine Musk is thrilled about this. This isn't like the tax credit going *poof*, where with the right sort of mental gymnastics he might be able to convince himself that Tesla will somehow weather the storm better than traditional auto manufacturers. This is Republicans giving the middle finger to the entire EV industry, and guess who stands to be the biggest loser?

  • if you want to get road users to pay for the roads they use you need to consider weight, miles, where and when driven. That six lane freeway in the middle of a city is expensive and only necessary a few hours of the day.

    If you want to consider public costs like emissions then you need to consider how to monetize those costs. If you want to discourage anti-social behaviors you need to increase the cost of vehicles that do those things.

    My favorite idea is an initial registration deposit based on a vehicle's g

  • ICE cars use a fuel that is taxed, but as far as I am aware the electricity used for cars isnâ(TM)t taxed in the same way. This means that the government will likely suffer a tax shortfall from electric cars. Given this, as much as Iâ(TM)m not a fan of the current Republican government, this tax may actually make sense.

    The problem is more likely the reasons they are giving for the new tax and therefore doesnâ(TM)t work in their favour.

    • Instead of a flat fee for each EV, wouldn't it make more sense to charge a tax on the electric usage of EV chargers? That way, you're getting tax revenue proportional to the mileage driven.

      • Instead of a flat fee for each EV, wouldn't it make more sense to charge a tax on the electric usage of EV chargers? That way, you're getting tax revenue proportional to the mileage driven.

        Quire possibly, but right now I don't think anyone has presented a proper path forward.

      • No, because most people will charge at home.

        The only actual "fair" way is to tax based on vehicle weight and annual odometer reading, and in a way that doesn't require some privacy-invading tracking crap.

  • While I don't support this tax if they are going to do it the tax should be calculated by per axle weight and include heavier ICE vehicles beyond a certain threshold with relative tax amounts in line with 4th power law.

    Personally I think cars EVs in particular are too damn heavy. This contributes to added road wear, increased tire and brake wear, associated particulate pollution, increased BOM costs. Additional kinetic energy is an added source of avoidable danger during accidents and poor road conditions

  • ICE vehicles pay based on mileage and weight today - itâ(TM)s called the gas tax. Heavier vehicles that drive more miles pay more, and lighter more fuel efficient vehicles pay less. This is how we pay for road maintenance. EVs need to pay their fair share towards road upkeep, preferable by the mile like everyone else.

  • Sure, if they implement an $800 ICE tax simultaneously, I'm good.

    My 1969 Mustang Grandé with an Edelbrock intake and a Holley double-pumper drinks a bit more than the original 4 barrel carb and factory intake. It takes Premium only, but hey - build a viable EV infrastructure and I'll drive a slot-car too.

  • From your federal EV tax write off?

  • READ MY LIPS ...

    New taxes, lots and lots of beautiful new taxes!

  • ⦠when they are not in power, and then when they are in power, they raise them.

  • Which is better than the usual, spend and spend Republicans, I guess. But between their tarrifs and this, they're going to have to rebrand their 'we hate taxes' bullshit.
  • by DrXym ( 126579 ) on Thursday May 01, 2025 @03:15AM (#65343879)

    Impose a tax on all vehicles. It can be calculated based on CO2 / NOX emissions (lifetime including manufacturing), and/or by vehicle weight, and/or vehicle length and/or other metrics with punitive levels for vehicles that pollute more or occupy more road space. Electric vehicles won't be exempt but the tax should be a statement that roads do not pay for themselves and cars that pollute should pay more. Thus not only does the tax raise revenue it also incentivizes changes in consumer patterns over time.

    Just like happens in any sane country. But the US is not sane and the paranoid conspiracy dribble over EVs and electrification is a manifestation of that.

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