Government to cheat consumers out of Hybrid tax credits

It seems the congress once again out one past the American people by having the EPA push a proposal that is little more than a thinly veiled item from lobbyists' wish lists. Starting with 2008 models the proposal would drop the fuel economy rating 10 to 20 percent for city driving and 5 to 15 percent in highway driving. But here's the real scoop:

Gas-electric hybrids would be more affected, with ratings for city driving decreasing an average of 20 percent to 30 percent. Those models are due to appear in showrooms in the fall of 2007.

The EPA's new fuel-economy estimates, the first revision in 20 years, include vehicle-specific data from tests to reflect more accurately high-speed driving, rapid acceleration, use of air conditioning and cold temperatures, the agency said.

Odd isn't it? Do regular cars get better fuel efficiency than hybrids? Ask anyone with a hybrid, no they don't. But with the EPA's new estimates you would think they were a lot closer to even. Also suspect, the EPA hasn't revised standards in 20 years and suddenly decided that it was time to revise them now? Oh that's right, they reviewed the standards because it was included in Bush's energy bill that was passed last year.

Also interesting, the energy bill of 2005 gave a tax credit to hybrid vehicle buyers based on what? That's right, fuel economy!!

Hybrid sales only represent 2% of the auto industry revenues so it seems hardly likely that it's the auto industry that lobbied congress and the administration for this. No, my bet would be on the oil industry. After all, if you get better gas mileage you'll buy less gas and they won't have another year of record profits. When you look at the figures, companies like Exxon's profits grew by 42% in just the last quarter of 2005! Ridiculously record profits.

posted by Sarai @ 4:40 PM