Toyota hybrid tax credits and Democrats
Why haven't Dems taken any action?Many Democrats in Congress have made global warming one of their most important political issues - at least in terms of political speech. Yet, political action is still lacking.
Most of these hard-talking Democrats and some Republicans have demanded tough increases in fuel economy that could severely threaten the viability of U.S. automakers. Fine. This is an important issue and tough action will be required. Nonetheless, tough talk and little action accomplishes nothing.
Finish Toyota hybrid tax credits and Democrats
Labels: Congress, Foreign Oil Dependency, global warming, Hybrid Vehicles, tax credits
posted by Dahcredyns at
9:34 AM
3 Comments:
(Rest of Story)
While government regulation might help, isn't the best way to change America simply good old competition? Thus, wouldn't it be a good idea to give tax credits to consumers to reward those companies taking tough action now - rewarding both responsible consumerism and responsible corporations?
Why then, are hybrid tax credits capped by manufacturer? That doesn't breed competition, it stifles competition. Besides, shouldn't the point of hybrid tax credits be to put as many hybrids on the road as fast as possible? Are we really that afraid of doing the right thing too quickly?
Case in point
Toyota has achieved their tax credit cap, yet neither GM nor Chrysler have sold one single full hybrid vehicle. Why should GM or Chrysler act now when they don't have to compete for the credits?
While U.S. automakers cry protectionism regarding foreign automakers, today's hybrid tax credits are no less protectionist. Yet fuel economy, whether in terms of global warming or foreign oil dependency, is one of the greatest issues -maybe the greatest issue - facing America. Yet, for Congress, however, it's politics as usual.
Competition breeds innovation
Toyota's hybrid cars have made every single automaker deal with hybrid technology seriously. Toyota's hybrids have made consumers believe that super efficient hybrid cars, plug-in hybrids and electric vehicles are possible.
And they are possible. Unfortunately, they just aren't very profitable. Still, without Toyota's efforts, the entire fuel economy conversation would still be focused on only hydrogen and fuel cells - a path to nowhere thus far. This type of tax-inspired complacency can longer be tolerated.
Moreover, investment and economies of scale can make hybrid vehicles more profitable. Consequently, the more hybrids sold today, the more investments made in hybrid technology, including next generation hybrid technology. For example, Toyota has already stated that its third generation Prius, due out in about a year, will use lithium-ion batteries - the same batteries that will one day power not just hybrid vehicles, but plug-in hybrids and electric vehicles.
Extend Toyota's tax credits now!
So, why not extend Toyota's hybrid tax credits? Such a move accelerates not only Toyota's hybrid investment, but every other automaker's hybrid investment as they strive to catch Toyota. This competition is the quickest path to real change in terms of fuel economy.
It is time for Congress to extend Toyota's hybrid tax credits now. Let's stop talking and start taking some real action. Foreign oil dependency and/or global warming are far too important not to take this small action immediately.
It is largely because of you blog that I chose to buy a "loaded" Toyota Camry Hybrid. It seems to be a marvelous car with extremely good gas mileage, thank you.l
Itman-
Glad to hear about your Camry hybrid purchase - you made my day today!
After you've had some time to fully experience your new Camry hybrid add your experiences to our Camry hybrid Testimonials.
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