Originally Posted by
50PlusCycling
If you've studied economics, you'll know the term "There are no free lunches." You may think that a $1500 tax credit is a good thing, but that credit must be made up for elsewhere, and what you think you are saving on the price of a bike you will end up paying in a different way. Tax credits are generally corporate welfare, which allow companies to sell uncompetitive products and derive their profits from the pockets of the taxpayers.
I largely agree with your post. But I must point out that the private costs of operating motor vehicles are far below the social (=true) costs of their operation. This is due partly to very large public subsidies applied to road construction and maintenance (it's not all paid for with gas taxes) as well as significantly underpricing of gasoline here in the US. Viewed in that context, the subsidies for alternative transportation might actually
restore some efficiency to people's decision-making.
Of course, it would be even better to simply eliminate all of the subsidies for motor vehicle travel, and apply more reasonable gas taxes to raise the price per gallon up to our best estimates of its true cost to the planet.