by Joseph Coletti
Senior Fellow, Fiscal Studies, John Locke Foundation
It’s generally accepted that hybrids and fully electric vehicles make the gas tax regressive because buyers tend to have higher incomes and the cars use less gas. Tax incentives for electric vehicles skew the tax burden further onto people with lower incomes. Authors of a new working paper find the insult to add to the industry. They find 70 percent of people who took electric vehicle tax credits would have bought an electric vehicle anyway. Where is the fairness in governments offering unnecessary tax breaks for things rich people were going to do anyway?