Pay-the-Rich Programs for Electric Vehicles
The federal government has for
some years been paying point-of-purchase
incentives for electric
vehicles. The program is called Incentives for
Zero-Emission Vehicles
(iZEV). The incentives averaging $4,000 per
electric vehicle, are
direct government payments to the retail seller
and manufacturing
companies upon the sale or lease of qualifying
electric and hybrid
vehicles. The program to reduce the market price
for the buyer is open
to individuals and businesses with a maximum 10
units per organization.
Transport Canada writes, "The federal (iZEV)
Program provides
point-of-sale incentives on eligible zero-emission
vehicles. To do
this, participating dealerships agree to lower the
purchase or lease
price of eligible zero-emission vehicles and apply
to the iZEV Program
for a grant on behalf of the purchaser or lessee."
The
government says that as of August 31 of this year,
over 56,000 payments
to companies have been made through the iZEV
program totalling more
than $239 million. Many global vehicle companies
have received payments
from the program.
Tesla, Inc. so far has been the
biggest recipient of the federal government
electric vehicle subsidies,
pocketing over $60 million. Tesla massaged the
rules with a Canada-only
electric vehicle model priced at $44,999 to
qualify for a $5,000
rebate. Transport Canada writes that the $5,000
amount is available for
"a vehicle with six seats or fewer, where the base
model (trim)
Manufacturer's Suggested Retail Price (MSRP) is
less than $45,000." The
U.S. Tesla cartel has no production facilities in
Canada. All its
vehicles and other products are made in the U.S.,
Europe and China.
The Quebec, BC and Ontario governments also
introduced a
comparable pay-the-rich scheme.
The Quebec program
offers, in addition to the federal amount, a
payment of up to $8,000 on
the purchase or lease of a new electric vehicle.
The program is
scheduled to conclude at the end of the year.
The
BC government has a "CleanBC Go Electric
Incentives" program managed by
the New Car Dealers Association of BC. The
government incentive offers
to pay the seller up to $3,000 on the purchase
price of a qualifying
new electric vehicle, plug-in hybrid electric
vehicle and hydrogen fuel
cell vehicle. The BC payment to the seller can be
combined with the
federal iZEV scheme and the BC SCRAP-IT program,
which pays up to an
additional $6,000 to the seller when an older gas
vehicle is replaced
with the purchase of a new electric vehicle, and
$3,000 when a
qualifying electric vehicle is purchased.
For
several years until September 2018, Ontario ran a
similar electric
vehicle pay-the-rich program with payments of up
to $14,000 per
vehicle. Dealers that had electric vehicles in
stock when the program
was discontinued and could not attract buyers with
only the federal
incentive reportedly transferred all their excess
inventories to Quebec
dealers.
Government Electric Vehicle
Infrastructure
In any sector of the modern
socialized economy, infrastructure as means of
production to support
the sector is crucial. The value from this
infrastructure should be
realized by the companies involved in the sector
as they use and
consume the infrastructure but this generally does
not happen.
Government pay-the-rich schemes abound both with
the production of
infrastructure and during its use and consumption.
The
Government of Canada has provided over $300
million to establish a
coast-to-coast network of fast chargers for
electric vehicles, natural
gas, and hydrogen refuelling stations and
continues at a rate of $75
million more per year. The government has also
provided the research,
demonstration, and development of next-generation
charging
technologies. Without this infrastructure
Canadians would not purchase
ZEVs.
Tax Write-Off for Businesses
Transport
Canada writes: "[The Trudeau government's] Budget
2019 proposed a 100
per cent write-off for zero-emission vehicles to
support business
adoption. [...] Where the capital costs for
eligible zero-emission
passenger vehicles (e.g., cars and SUVs) exceeds
$55,000, the 100 per
cent write-off will be limited to $55,000 plus the
federal and
provincial sales tax that would have been paid if
the vehicle was
purchased for $55,000." No mention is made of a
limit on the number of
vehicles that a company can claim for the tax
write-off.
All
these programs are aspects of the pay-the-rich
economy to support the
continued power, wealth and privilege of the
global oligarchs. These
programs suck value out of the economy and even
the country, such as
the $60 million the federal government has given
the U.S. Tesla cartel
under the iZEV pay-the-rich scheme. The working
class must expose and
denounce all these pay-the-rich schemes and demand
they be stopped.
The movement to stop paying the rich is a
necessary and
important part of the program of the working class
for a new direction
and aim for the economy to serve the people and
not the narrow private
interests of the global oligarchy.
Stop
Paying the Rich!
Increase Investments in Social Programs!
This article was published in
Volume 50 Number 39 - October
17, 2020
Article Link:
Pay-the-Rich Programs for Electric Vehicles
Website: www.cpcml.ca
Email: editor@cpcml.ca
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