Item — HN Reader

My opinion: The transition from ICE vehicles to EVs is a very large net benefit to society, so during this period when new ICE vehicles are still legal, we should be giving EVs special ("unfair") benefits to encourage people to switch. If this new tax results in people choosing to buy an ICE vehicle who would have bought an EV without it, that's a very bad outcome.

As for the loss of revenue from the gas tax, I think a two-phase solution would be best to solve that. In the first phase (now), make up the revenue by raising the gas tax. In the second phase (once ICE vehicles are almost gone), ban new ICE vehicles and then implement this tax. This way, the tax would never result in someone buying an ICE vehicle instead of an EV.

2 comments

Implementing the tax now makes sense because it brings ICE and EV into alignment now, while usage is relatively low, rather than suddenly introducing a tax down the proverbial road.

To incentive switching the government has other policy tools at their disposal, such as a one-off subsidy at purchase time.

> Implementing the tax now makes sense because it brings ICE and EV into alignment now

It doesn't. ICE vehicles are effectively subsidized by not pricing in externalties. The playing field was never level, suddenly insisting that it ought to be is a selective demand for rigor.

> it brings ICE and EV into alignment now

I know it does. My point is that bringing them into alignment now isn't a good thing.

"we should be giving EVs special ("unfair") benefits to encourage people to switch"

Sure, but at least in the US, electric vehicles already get numerous other benefits include tax rebates, lower registration fees, HOV lane access, etc.

> tax rebates

Not Tesla or GM.

> lower registration fees, HOV lane access

Not in most states.