The Senate Finance Committee has eliminated the proposed $250 annual registration fee for electric vehicles and $100 for hybrids from their budget proposal, despite the fee's inclusion in the House version. The decision came amid concerns over its implementation difficulties, particularly due to logistical issues highlighted by Republican Sen. Bernie Moreno. Critics argue that such a tax would discourage EV adoption and unfairly penalize low-mileage drivers. Furthermore, the fee would have retroactively affected existing EV owners, raising legal and ethical concerns.
It's impossible. There is no mechanism today for the federal government to collect an annual fee. Doesn't exist. It would cost us more money to create a system to collect the money.
A flat annual tax would actively discourage EV adoption. It would hit EV drivers harder than gas car owners and unfairly penalize those who drive fewer miles per year.
Critics argue that the proposed fee is punitive, saying it would require major amendments to be equitable.
Consumer Reports pointed out that the actual problem is the stagnant federal gas tax-which hasn't budged from 18.4 cents per gallon since 1993.
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