The analyzer is back making sense as he always does.
Here are some comments I prepared for the Senate Finance Committee for hearing on this bill 2-25. This is the second committee. I missed it the first time around.
|Subject:||Oppose SB 264 Plug-In Electric Vehicle Tax Exemption|
|Date:||Sat, 23 Feb 2013 12:52:37 -0700|
|From:||James Crawford <firstname.lastname@example.org>|
|To:||John Arthur Smith <email@example.com>, Carlos Cisneros <firstname.lastname@example.org>, Sue Wilson Beffort <email@example.com>, William Burt <firstname.lastname@example.org>, Pete Campos <email@example.com>, Carroll Leavell <firstname.lastname@example.org>, Howie Morales <email@example.com>, George Munoz <firstname.lastname@example.org>, Steven Neville <email@example.com>, Nancy Rodriguez <firstname.lastname@example.org>|
|CC:||Michael Sanchez <email@example.com>, Clemente Sanchez <firstname.lastname@example.org>|
I oppose SB 264 Plug-In Electric Vehicle Tax Exemption. This bill provides an exemption from gross receipts and compensating taxes for plug in electric cars. In additon it provides an exemption from the motor vehicle excise tax. The exemption from the excise tax has an expiration date of 2018 but there is no expiration on the exemptions from gross receipts and compensating taxes. It is estimated general fund revenues will take a hit of over $400,000 per year.
SB 264 is just one more attempt by the progressive global warming elitists to entice people to buy cars that are horribly expensive, unreliable, dangerous, provide no environmental benefit, already heavily subsidized, and which nobody wants. It is a sinful waste of NM taxpayer money to dump more of it into the black hole of electric cars.
Electric cars cost about $40,000 and up plus another $2,000+ for a charging station. There are not many of us who can spend that much money on a tiny unreliable car. On top of the upfront costs, electric cars are expensive to operate. A compact car getting about 35 miles per gallon of gas costs about 10 cents per mile but an electric car ends up costing about 14.3 cents per mile or 43% more per mile. The typical electric car buyer has an income of $170,000 so these cars are basically for the relatively wealthy elite car buyers. Why do they need to be taking money out of all the rest of us NM taxpayers’ pockets?
Electric cars are unreliable. At best they can go 100 miles on a charge and more likely only about 30 miles. When roads are bad or traffic is at a stand sill these cars can exhaust their battery life while snarled in traffic and be stranded on the roadway. Recharging stations are few and far between so ability to recharge is pretty unreliable. New Mexico and most western states have large distances to be covered. There is no way an electric cars is suited to NM travel conditions. Trying to lure New Mexicans to by an electric car is an exercise in futility.
Electric cars are not safe. There have been incidents of the batteries catching fire in crashes and endangering the passengers . There have been incidents where people have been run over because the cars make almost no noise. We now have proposals to add beepers to the cars to warn people of their presence. Users often have to choose between using the heater and making it to their destination which is dangerous in very cold areas. As mentioned above they are prone to getting stranded in traffic if delays are long enough which may cause traffic accidents.
Electric cars are the darlings of the environmental crowd. However, do they have any environmetal benefit? They do not. Instead of being called electric cars, they should be called coal fired cars becuase of the amount of coal fired electicity it takes to keep them on the road. They can’t be charged at night by wind and solar so electric cars depend on elelctricy from coal and gas fired generation stations. Charging takes 3-8 hours using an amount of electricity equivalent to 3 1/2 ton air conditioner and we know what a big AC does to our elctric bills in the summer! In addition they use giant batteries made from toxic metals like lithium and cobalt and create a disposal problem since batteries do not last the life of the car. Battery manufacturing also front loads the carbon emissions due to electric cars in addition to the emissions from electric generation. These things are not the environmental wonders they are cracked up to be.
So here we are wanting to give well-to-do buyers making $170,000+ pre year more tax welfare to buy an electric car. Elitist buyers already are getting $7,500 government rebate for these things. This is just more welfare for people that don’t need it. On top of the direct subsidies to the buyers, the manufacturers are heavily subsidized to build electric cars. For example, each Chevy Volt is the beneficiary of $250,000 of federal and state subsidies. General Motors loses as much as $49,000 on each one it builds. Dropping another $1200+ of New Mexico taxpayer money for each car into this bottomless pit is insane.
In spite of federal and state legislators constantly trying to bribe people to buy an electric car, there is no market for them. There were supposed to be 11 models of electric cars produced but 6 of the 11 have not made a delivery, stopped production, or are already out of business. The Volt has also recently stopped production. No one but a few environmental purists with a lot of money will even consider buying one of these electric cars. If they want one they can buy one on their own without my help.
SB 264 is bad for the general fund, bad for all the low and middle income taxpayers who will support this welfare program for weathy elites, and of no benefit to the environment. It is a loser all the way around.
Do not pass SB 264