GOP tax reform bill would end the $7500 EV tax credit (and other tax related grousing and grumbling)

[206er]

Model 3 buyers who are employees (of Tesla, SpaceX, Solarcity, ...), their family members, certain "VIPs", and people who already bought previous Tesla vehicles may get the last of the incentives and it looks like the "line waiters", many of which who were waiting for the "affordable Tesla" won't get the incentives because Elon says we don't need them?

A few days ago I still felt proud to have been an early morning line waiter... now I'm starting to feel like a sucker.

 

[SageBrush]

You only had $400 in Federal taxes? That means you earned ... mmm... let me check... a total of $14'500 for 2016?

It does not work that way. You would have to know his deductions and credits to have any hope of estimating his income.

 

[MXFan]

Write your congresspeople now, it only takes a minute:

Plug In America

Sent.

 

[SageBrush]

The $3.80 came from this study. Others have had varying results depending on methodology. The American Lung Association put out this report a while back, which was limited to ZEV states and concluded about an additional $1.15 in public health costs. I've seen some as high as $15/gallon inclusive of the cost of the fuel.

Who is paying for the military misadventures, fossil fool wars, and dictator peddling to keep the oil flowing ?

 

[suwaneedad]

You might want to amend this. Detroit, especially GM, is SUPPORTIVE of the credit and is lobbying congress to keep it.

House Plan Would Eliminate Electric Vehicle’s Tax Credit

“Tax credits are an important customer benefit that can help accelerate the acceptance of electric vehicles,” GM said Thursday. “Because General Motors believes in an all-electric future, we will work with Congress to explore ways to maintain this incentive.”

I had seen that GM quote, and frankly I don't believe it. The Big Three stand to make MUCH more money by perpetuating the status quo as long as possible. They can line the pockets of the politicians AND have their feel-good press release team put forth quotes such as the above.

 

[McRat]

Don't worry, they're trying to eliminate the child tax credit, too.

You need to do your homework. They are not eliminating dependents, "The House GOP plan establishes a new family credit, which includes expanding the child tax credit, to $1,600 from $1,000."

In any case, I do have kids, I pay full tuition and school taxes. I have no mortgages. I live in a high taxation state. I'm an employer. I'm not a member of an authorized diversity group (more in tuitions, fewer gov't contracts). Our state is now increasing the costs of buying and operating an EV, and I have 3 so far.

My taxes will go down if the plan is passed, which I can use to buy more equipment and hire more technical staff.

But my state is neither green nor pro-business. I will be punished more and more each year. I used 22% less power, so they increased my power costs 8%. To plug in an EV in my state at a business is up to $17.32 per kW demand + .17 per kWh consumed recharging. ie - fast charging is crazy expensive. Slow charging is affordable.

 

[kengchang]

Just to be fair, the site I linked to also offers to calculate 2017 taxes based on the current law. Did you plug the same numbers into that for a true comparison of the same tax year? We don't want to compare last year's taxes with proposed next years.

Tax bill went up $1700, what a giant middle finger to middle class while handing tax cut to the wealthy and corporate.

 

[McRat]

I had seen that GM quote, and frankly I don't believe it. The Big Three stand to make MUCH more money by perpetuating the status quo as long as possible. They can line the pockets of the politicians AND have their feel-good press release team put forth quotes such as the above.

Of course you don't believe it. That would mean you'd have to do some research and calculations.

 

[osu_cowboy_007]

I'll probably get the shorter range version and wait for the AWD if the tax credits go away.

 

[Az_Rael]

What am I doing wrong to be paying 25% then..? Maybe we need to have some kids, this DINK household is working against us.

I feel yah. I currently pay 27%, way higher than anyone I know. My mistake appears to be having both myself and my husband working for salaries in a high paying field with no kids. We are apparently the suckers in this game, making good money via a salary.

And that is just my Federal rate. We won't even get into what the state takes out of my paycheck.

 

[McRat]

Unless Russian Facebook ads, targeted hacking, and a vocal minority hijack our democratic process (again).

I'm pretty sure the Colleges in the US will ban free speech this year. That should equal everything out.

 

[LCR1]

Military spending is one of the few areas our government is mandated to spend funds on per the Declaration of Independence and the Constitution.
....

Doesn't mean they need to spend as much as they do.

 

[d21mike]

I feel yah. I currently pay 27%, way higher than anyone I know. My mistake appears to be having both myself and my husband working for salaries in a high paying field with no kids. We are apparently the suckers in this game, making good money via a salary.

And that is just my Federal rate. We won't even get into what the state takes out of my paycheck.

And for which you will no longer be able to deduct (state tax). I talked to my CPA yesterday and the Alternative Minimum Tax removal will offset the no state tax deduction (mostly I think).

 

[LCR1]

I feel yah. I currently pay 27%, way higher than anyone I know. My mistake appears to be having both myself and my husband working for salaries in a high paying field with no kids. We are apparently the suckers in this game, making good money via a salary.

And that is just my Federal rate. We won't even get into what the state takes out of my paycheck.

Max out both pre and post tax IRAs find ways to lose money.

 

[Dr. J]

Sorry if this point has already been made, but those who are simply accepting the GOP tax plan as a done deal and are only considering how they personally will respond to the loss of the EV tax credit, might remember that, as citizens in a democracy, they have the right to participate in the democratic process. If you believe the EV credit is worth saving, you should consider contacting your representative and senators and expressing your opposition to ending this provision in the tax code. This step may be especially impactful if you live in a "red" district or state. While some may doubt it will do any good, surely the lessons of the ACA political battle of the past 9 months apply. The half million people who reserved a Model 3 might well influence the final shape of the current tax cut proposal. It is surely worth a try -- at least as worthy, and possibly more productive, than wringing of hands. Rather than wringing one's hands, try ringing your representative/senator.

Done. An excellent suggestion.

 

[kengchang]

And for which you will no longer be able to deduct (state tax). I talked to my CPA yesterday and the Alternative Minimum Tax removal will offset the no state tax deduction (mostly I think).

AMT is rarely applicable to normal salaried professional, we just don't have that many deduction. eg POTUS for his AMT payment in 2005, which he is pushing to kill. Who gets the benefit really from all these supposed to be middle class tax cut?

 

[Az_Rael]

Max out both pre and post tax IRAs find ways to lose money.

Oh, I am fully maxed out on everything I can. I am down to more time consuming schemes like real estate or a side business at this point. None of which I really have time for with my current job. So I just deal with the tax rate and feel disgruntled about it every April.

 

[Chopr147]

Alternative Minimum Tax

So I have looked into the tax plan somewhat but did not see any mention of the AMT. Personally if the AMT is removed I will be very happy. High tax states like mine,mortgage etc................put so many middle class into the AMT it has long passed it's objective.
Quick outline: 1973 ( I think it was) : AMT due to the wealthy finding loopholes to pay $0 in taxes. Good idea that has outdated it's usefulness. Problem is politicians just can't let go of the money coming in from the AMT. Bush and Obama had mentioned the AMT in the past

 

[LCR1]

Oh, I am fully maxed out on everything I can. I am down to more time consuming schemes like real estate or a side business at this point. None of which I really have time for with my current job. So I just deal with the tax rate and feel disgruntled about it every April.

Start a business that just seems to lose money. In Texas it's free to file a DBA and Sales Tax permit, family in Cali never mentioned it costing them. I race motorcycles so I became al dealer selling oil. After that I started writing everything off. The motorcycle was expensed all the mileage on my truck and trailer was expended out, anytime I went somewhere, anywhere, I would turn it into a sales call somehow and write off the trip. I'd donate product to the club, a 501c(7), for raffles and write off the product cost and expense everything related to the travel. I made probably $1,000/yr from automated sales linked to my account but I'd write off thousands in expenses and business losses for stuff I'd probably do anyway. Eat out with friends, who could be potential clients, write it all off as employee meals or client/marketing expense. Eventually someone buys something for their car, garden, tool box, etc. and it all just became legitimate.

Neighbor does the same thing as a real estate broker, got his license and sells like 2 houses a year on the side but expenses everything and anything through the DBA(maybe LLC) that could possibly qualify. After a few years the IRS considers the company more of a hobby so you just shut it down and start a new one.

 

[ohmman]

I feel yah. I currently pay 27%, way higher than anyone I know. My mistake appears to be having both myself and my husband working for salaries in a high paying field with no kids. We are apparently the suckers in this game, making good money via a salary.

And that is just my Federal rate. We won't even get into what the state takes out of my paycheck.

My effective rate has not dipped below 30% in as long as I can remember. There's an upside to that, of course, so I don't let it bother me.