America Now Provides Taxpayer Subsidies To Wealthy Buyers Of the Most Popular Luxury Car Sold In the Country, The Tesla Model 3
This past month, Tesla's Model 3 finally broke free of its production constraints. In the past three months in the U.S. alone, Tesla has sold about 26,000 Model 3 luxury sedans. This makes the Model 3 the top-selling luxury car model in the United States, surpassing the sales of luxury car models from automakers like Lexus, Cadillac, BMW, Mercedes Benz, Audi, Porsche, and BMW. Interestingly, America's taxpayers are now providing direct subsidies to the wealthy buyers of this model. Why?
There is a simple reason. In both of the last two tax bills, one crafted primarily by Democrats and another almost entirely by Republicans, the law allows for a tax credit of up to $7,500 for certain green cars. The Model 3 qualifies for the full amount of this deduction. The original idea was that since electric vehicles cost more, and since almost nobody seems to want one (97.4% of Americans opt not to drive a green car of any type, electric or otherwise), the taxpayers should help support the wealthy folks who buy luxury electric cars. What few saw coming, or admitted to seeing, was that the most popular electric car would be so popular. It was hard to miss. Tesla bragged of having hundreds of thousands of reservation holders before the car was even released.
Despite Tesla's many public proclamations that the Model 3 would be "mainstream," its pricing is not mainstream by any sane definition. The car starts at about $49,000 and its newest trim can cost more than $80,000. By contrast, a Honda Civic Hatchback, which is almost identical in size, starts at about $21,000.
When the most recent tax law was being used in Washington as the latest way to divide the nation, Nancy Pelosi (D. CA), the House Minority Leader called the tax plan, "Monumental, brazen theft from the American middle class and every person who aspires to reach it." She pointed out that 83% of the tax bill's benefits went to the wealthiest 1% of Americans. Her counterpart in the Senate, Bernie Sanders (I. VT), said of the tax plan that included payments of up to $7,500 to wealthy Tesla shoppers, "What this legislation is about is fulfilling the promises, Republican promises, made to wealthy campaign contributors. There is a reason why the billionaire class provides hundreds of millions of dollars in campaign contributions to Republicans, and now it's payback time."
Not every Tesla shopper will qualify for the tax benefit. Some will have so much annual earned income that the Alternative Minimum Tax may preclude them from enjoying the credit fully or at all. However, if you are retired and wealthy or if you are a trust-fund recipient, the chances are good you will enjoy the tax credit. Chat with your trust administrator or your family's tax attorney to learn more. Just remember that your total wealth does not preclude you from getting this tax credit, just a high earned income in the present tax period.
Tesla includes a section on its sales site promoting the tax benefits. Also, you should know that there is presently a cap on the number of vehicles that can be sold by each manufacturer with the tax credit. Tesla will soon have to start to phase out the tax credit unless Congress changes the plan and extends Tesla's tax credit for wealthy buyers.
Now if you are worried about the tax credit expiring, or you think you may earn too much to qualify, don't despair! There is another Tesla tax loophole just for you! And this one is for Tesla's most expensive model. Even the Tesla trims costing over $130,000 qualify for the tax credit. We'll let the video below explain that second way to dodge some taxes. Some folks just can't seem to decide which Tesla Model to get in order to maximize their tax benefits. Hurry in to get yours. And don't forget to tell your buddies at the Country Club about this sweatheart of a deal.