How Bush Saved the Environment
I'm not one for social engineering through the tax code. If I had my way, there would be a flat tax and absolutely no deductions for owning a house, going to college, living in North Minneapolis, working in an enterprise zone, locating a baseball team in town, buying groceries, or low flow flushing.
However, this is the system we have and the recently passed energy bill includes some tweaking to the current system that gives people tax credits for purchasing hybrid vehicles. This includes a tax credit of $3000 for the hybrid Ford Escape.
I happen to own a 2004 Escape, not the hybrid version, but it is a perfectly capable small SUV. While it is the 'small' SUV, it is as big as the '98 Explorer. As a good conservative, I do believe in economics and that people will largely behave as predicted to maximize their benefit. With the addition of the tax credit, these hybrids may be hitting our streets in serious numbers.
A 2006 Ford Escape - 4cyl, 153 horse power, 4wd, Blue Books for $21,759
It also gets 21 MPG in the city.
A 2006 Ford Escape Hybrid - 4cyl, 133 horsepower, 4 wd, Blue Books for $29,125
It gets 33 MPG in the city.
Lets assume 15,000 miles driven a year and an average gas price of $2.25/gallon.
The hybrid needs 455 gallons for a gas bill of $1022.
The standard model needs 715 gallons for a bill of $1607.
Gas saving - $585 annually
Hybrid cost: $29,125
- Standard Cost $21,759
- tax credit $3,000
= $4,366
That $4,366 is still pretty significant since it would take 7.5 years to break even -(for you financial types, longer if you discount over time).
However, if you get a top of the line Escape with a 200hp V6, you'll pay $25,653. After the tax credit, a hybrid is only $472 more! The difference is made up in the first year of gas savings.
Bottom line, for consumers who can afford a top end Escape, they have an equal dollar option between the powerful Escape that can tow boats, or the economical Escape that will seriously reduce future gas bills. It would seem that Bush has single handedly leveled the economic playing field for hybrids. As most conservatives have been telling environmentalists for year, the market will set you free, clean the air, and lead to environmental solutions.
However, this is the system we have and the recently passed energy bill includes some tweaking to the current system that gives people tax credits for purchasing hybrid vehicles. This includes a tax credit of $3000 for the hybrid Ford Escape.
I happen to own a 2004 Escape, not the hybrid version, but it is a perfectly capable small SUV. While it is the 'small' SUV, it is as big as the '98 Explorer. As a good conservative, I do believe in economics and that people will largely behave as predicted to maximize their benefit. With the addition of the tax credit, these hybrids may be hitting our streets in serious numbers.
A 2006 Ford Escape - 4cyl, 153 horse power, 4wd, Blue Books for $21,759
It also gets 21 MPG in the city.
A 2006 Ford Escape Hybrid - 4cyl, 133 horsepower, 4 wd, Blue Books for $29,125
It gets 33 MPG in the city.
Lets assume 15,000 miles driven a year and an average gas price of $2.25/gallon.
The hybrid needs 455 gallons for a gas bill of $1022.
The standard model needs 715 gallons for a bill of $1607.
Gas saving - $585 annually
Hybrid cost: $29,125
- Standard Cost $21,759
- tax credit $3,000
= $4,366
That $4,366 is still pretty significant since it would take 7.5 years to break even -(for you financial types, longer if you discount over time).
However, if you get a top of the line Escape with a 200hp V6, you'll pay $25,653. After the tax credit, a hybrid is only $472 more! The difference is made up in the first year of gas savings.
Bottom line, for consumers who can afford a top end Escape, they have an equal dollar option between the powerful Escape that can tow boats, or the economical Escape that will seriously reduce future gas bills. It would seem that Bush has single handedly leveled the economic playing field for hybrids. As most conservatives have been telling environmentalists for year, the market will set you free, clean the air, and lead to environmental solutions.
posted by Bill Gilles | 10:56 AM
3 Comments:
I've never considered the words "powerful" and "Ford Escape" in the same sentence before.
My 98 Explorer is also larger than your 2004 escape. Let's not continue that analogy to other comparisons.
My comments were misplaced into the previous comments section.
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