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Hello, everyone, Welcome back to the World of Pain podcast.
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I know it's been a little while since we've had
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a subsidy show, but we're gonna jump right back into
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one right now. With that's kind of covering what's been
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kind of a popular debate topic lately, and that's the
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EV subsidies and electrification mandates really kind of pushing the
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way that they've kind of pushed the the evs on
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people getting people away from internal combustion engines and stuff
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like that, even though they might right now they're not
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really the best option for people. But let's let's get
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into the show Sumwhere tonight Amanda standing in his driveway
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staring at a dashboard that looks like a Christmas tree.
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He's not thinking about climate targets or market transitions. He's
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thinking about whether he can get to work tomorrow, whether
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that check clears Friday, and whether he can keep his
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kids in the same school another year. Somewhere tonight, a
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mother is doing the kind of budgeting that should qualify
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as a second job. She's not mad at her neighbors,
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and she's not trying to win the Internet. She's trying
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to stretch a tank of gas a grocery bill and
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medical copays across a month that feels longer every year,
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And somewhere tonight, a small business owner is looking at
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a truck that needs to be replaced in numbers that
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don't make sense anymore. The price is climbed, the interest
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rates climbed, the insurance climbed, the parts climbed, the labor climbed.
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Everything climbed, and the only thing that didn't climb is
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the margin. That's the America we're talking to, not a
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political cartoon, not a corporate brochure, not a press conference
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with just a perfect lightning. The real America that runs
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on work, sacrifice and responsibility. So when we talk about
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ev subsidies and the electrification mandates, we are not talking
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about a toy for rich people. We're talking about transportation,
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which means freedom. We are talking about mobility, which means employment.
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We're talking about whether a family can get to a job,
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whether a business can deliver a service, whether a farmer
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can keep a season on schedule, whether a town can
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function without being punished by decisions made hundreds of miles away.
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And here's the hard truth we have to say out
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loud before we get into anything technical A program can
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be borne out of good intentions and still be hijacked.
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It can be set to begin as help and then
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it becomes a machine. It can start as compassion and
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become a funnel where money goes one direction and influence
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goes the other. Government programs often begin with a reason.
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They often begin with a legitimate need. They often begin
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with an honest promise to help people avoid hardship, to
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stabilize the system, to accelerate progress, to protect the public.
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But when a system grows and the dollars multiply, the
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rules become a maze. And when bureaucracy becomes permanent, something
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else shows up. Waste shows up, then favoritism shows up,
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Then loopholes show up, then fraud shows up. It wants
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fraud shows up. Trust dies, The taxpayer becomes bitter, the
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honest recipient becomes suspect. The public turns into two tribes
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that can't hear each other anymore. So tonight, I'm not
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here to attack everyday Americans who make honest choices in
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the system that exists. If you brought home an ev
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because it worked for your life, that doesn't make you
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an enemy. If you wanted lower maintenance, a smoother drive,
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quieter commute. That doesn't make you a villain. If you're
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a business owner experimenting with the fleet because you're trying
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to cut operating costs, you are not the target of
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this episode. If you're a working family that took advantage
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of what the law offered and tried to build a
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better life, you are not the problem. The problem is
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the subsidy class, the permanent layer of insiders who learn
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how to turn public policy into private gain. The people
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who don't just follow the rules, they shape the rules.
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The people who speak the language of public good while
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quietly building a system where the public pays and the
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connected collect. And the reason this matters is because we
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are not talking about small money. We are talking about
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an entire national transition vehicles, charging networks, manufacturing incentives, emission standards,
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fuel economy rules, state level sales mandates, and a political
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war over the future of transportation. This is not a
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side issue. This is the American economy. This is the
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cost of living. This is the dignity of work. That
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is whether the middle class stays the middle class. So
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here's the moral framework before we get into the numbers.
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We can care about cleaner without letting bureaucrats build empires.
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We can care about innovation without allowing corporate capture. We
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can care about progress without forcing families into purchases they
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can't afford. Compassion and accountability are not enemies. In fact,
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compassion without accountability is how you get exploited, and accountability
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without compassion is how you get cruel. What we are
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aiming for is stewardship, stewardship of taxpayer dollars, stewardship of
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national priorities, stewardship of the truth. And if it makes
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some people uncomfortable, good, We've been numb for far too long.
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We've been trained to accept complexity as inevitable and waste
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as normal. Tonight, we're gonna untrain that because the biggest
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lie in modern politics is that you have to choose
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between caring about people and demanding competence. You don't. You
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can do both, You must do both. And the standard
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we're going to hold as simple. If you take money
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from the working American, you owe the working American. Transparency
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results in respect, not speeches, but results. America doesn't run
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on slogans. America runs on systems. It runs on roads
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that you don't ask what you believe. It runs on
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power lines that don't care what party you vote for.
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It runs on logistics and labor and steal and diesel
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and deadlines, and transportation sits right in the center of
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all of it. If transportation fails, everything gets more expensive.
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If transportation becomes unstable, life becomes smaller, jobs get harder
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to reach, goods get harder to move, and communities get isolated.
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So when the federal government and states started pushing the
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country toward electrification through subsidies, through regulations, through standards, through
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what some people call mandates and others call targets, they
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weren't just nudging consumer choice. They were bending a pillar
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of modern life. And the pitch was clean and simple.
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EV's reduced tailpipe emissions. EV's they can lower operating costs.
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EV's can bring manufacturing back, EV's can strengthen energy security.
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And evs can make the future cleaner and the economy stronger.
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And if that was all it was just a pitch,
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just a choice, just an option in the market, this
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wouldn't be nearly as explosive. But that's not all it became.
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Because the moment the government starts moving money, the moment
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it starts writing rules that favor one technology over another,
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the moment it begins setting standards that practically require a
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certain outcome, you aren't dealing with a neutral market anymore.
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You're dealing with power. And in America, power is supposed
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to be accountable to the people. That is the whole point.
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That is the promise. But here's the reality too. Too
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many families feel in their bones. They look at the
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cost of living and they feel the system is being
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engineered for somebody else. They look at the vehicle prices, financing, insurance,
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and repair costs, and they feel like they are being
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squeezed between corporate profit and government ambition. They feel like
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the decision makers will never stand in their driveway staring
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at that dashboard at that Christmas tree, and they will
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feel like the decision makers will never skip groceries to
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pay the insurance bill they fuel. The decision makers will
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never have to choose between fixing the truck and fixing
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the furnace. And what makes this topic even hotter right
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now is that the subsidy landscape has shifted fast. The
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IRS explains that the new clean Vehicle credit under Section
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thirty D is only available for vehicles acquired on or
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before September thirtieth, twenty twenty five, with rules for what
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acquired means, including binding contracts and payments. The IRS also
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states that the previously Owned Clean Vehicle credit under Section
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twenty five E is not available for vehicles acquired after
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September thirtieth, twenty twenty five, and it lays out eligibility rules,
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income limits, and the basic credit structure for qualifying purchases
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made before that cutoff. In the IRS notes that the
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Qualified Commercial Clean Vehicle Credit under Section forty five W
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follows the same section September thirtieth, twenty twenty five acquisition
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cutoff with seller and dealer reporting requirements tied to eligibility.
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So here's what that means in plain English. For early
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twenty twenty six, the customer facing headline grabbing credits that
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people argued about at the dinner table have largely expired
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for new acquisitions after that date, but a larger fight
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didn't disappear because the regulatory pressure remains, The infrastructure fight remains,
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the state level standards remain, the manufacturing incentives and industry
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policy remain. So if you think the EV subsidy era
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ended with that deadline, you're missing the bigger story. The
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bigger story is the system that formed around it, how
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government uses carrots and sticks to reshape markets, and how
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fast that can create a class of winners who depend
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on the program more than they depend on the customer.
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That's why the episode matters to everyday Americans, even those
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who will never buy an EV. It matters because these
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policies affect what manufacturers build, what dealers stock, what banks finance,
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what insures price, where repair shops can service, and what
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utilities must upgrade and what states will charge to replace
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lost fuel tax revenue. It matters because the middle class
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always ends up paying for the transition twice, once through
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taxes and once through higher costs inside the market. And
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it matters because when the country gets forced into a
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binary pro EV versus anti EV, we stop asking the
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only question that it truly protects the public. Where does
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the money go, who does it help, who does it hurt?
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And how do we do better? This episode is about
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the money flow, It's about the influence flow. It's about
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what happens when politics turn transportation into a battlefield. This
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episode is about where the money goes, who it helps,
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who it hurts, and how we do better. Before we
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talk about distortion, corruption, mandates, and the mess, Let's talk
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about the real benefits honestly and fully, because if we
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don't have the respect the real reasons people support these policies,
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we will never build solutions that hold the country together.
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There are Americans who benefit from electrification, incentives and initiatives
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in ways that are practical, not ideological. Their support isn't
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because they want to control anybody. Their support is because
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they're trying to solve problems in their own lives. Start
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with the most basic truth. Gas and diesel prices swing.
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The swing is based on global events, supply chains, refineries, politics,
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and things families can't control. When fuel spikes, it hits
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hard working people first because they can't simply stop driving.
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If you're a nurse, alignment, a factory worker, a teacher,
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a trainsman, you can't stop commuting. Your kid's needs aren't optional,
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and when fuel goes up, your budget doesn't suddenly get
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a raise to match it. For some households, the promise
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of an ev stability not perfection, not magic stability. If
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they want a predictable cost per mile, they want fewer
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surprise repairs related to certain drive train components. They want
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a quiet confidence that if they can charge at home,
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their fuel is there every morning. That benefit is real
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for some people, especially in households with a driveway, a garage,
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or accessible to reliable charging. It's not universal, but it
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is real. Now, let's talk about small business. A small
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business lives and dies by operating costs. A plumbing company
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doesn't care about political slogans. A delivery business doesn't care
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what's trending on social media. They care about whether the
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numbers work. If a business can reduce fuel costs, reduce
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certain maintenance costs, and keep vehicles on the road more consistently,
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that's not theory, and yes, some government incentives were designed
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to help that transition, especially when prices were high and
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infrastructure was still growing. That was part of the bridge
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logic help early adopters absorb upfront costs while the technology scales.
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The Department of Energy notes that the Internal Revenue Code
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Section thirty D provided up to seventy five hundred dollars
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to qualified buyers of new clean vehicles tied to requirements
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related to critical materials and battery components, with additional restrictions
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described as implementation evolved that credit no longer applies for
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vehicles acquired after September thirtieth, twenty twenty five. But the
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goal behind it was straightforward, reduce the upfront barrier, expanded option,
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and push the market towards scale. So if you're listening
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and thinking, at least they were trying to make it affordable.
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That's a fair point about the state of purpose. No,
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the used vehicle side matters too, because most working families
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don't buy new they can't afford to buy new. The
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IRS describes the Clean Vehicle Used Credit for qualifying purchase
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purchases acquired before September thirtyth twenty twenty five. Including the
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credit equals thirty percent of sale price up to a
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maximum of four thousand dollars with eligibility conditions such as
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purchase price limits and income liments. That's a tangible benefit
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for a household living paycheck to paycheck because a few
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thousand dollars can be the difference between we can do
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this and we can't. And again, this is where I
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want to be crystal clear. When honest people use a
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program the law allows that doesn't make them thieves, it
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makes them citizens. Navigating the system they were given. But
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citizen benefits isn't only about the tax credit. It's about
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the infrastructure. If a country wants people to adopt evs,
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charging has to exist. It has to be reliable. It
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has to be where people can actually travel. It has
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to work when they pull up, not after they call
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a helpline and wait. Under bipartisan Infrastructural Law, the federal
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government launched programs to support public EV charging infrastructure. The
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GAO notes that the FHWA administrators and EVI and the
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CFI program, and that is as of April twenty twenty five,