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View Diary: Elon Musk, SpaceX and Republican hypocrisy (120 comments)

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  •  Elon Musk's car relies on transfers from poor to.. (1+ / 0-)
    Recommended by:

    ..the rich.

    The Tesla Larry Ellison bought has was subsidized to the tune of 10K (7.5K federal +2.5 state).  That 2.5K came from the sales taxes paid by the struggling family in East LA.

    And this is before factoring in the 500M loan from the federal government.

    Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project.

    by PatriciaVa on Sun May 27, 2012 at 06:22:51 PM PDT

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    •  how many people have jobs (0+ / 0-)

      that wouldn't otherwise and would be on food stamps, too?

      "There's nothing serious about a plan that claims to reduce the deficit by spending a trillion dollars on tax cuts for millionaires and billionaires." - President Obama

      by fhcec on Sun May 27, 2012 at 06:46:34 PM PDT

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    •  So what you're saying is (0+ / 0-)

      The rich don't buy things and if they do, they just wink and nod and the sales tax is refunded to them,

      •  I'm saying that the struggling family in East LA.. (0+ / 0-)

        ...should not be forced to subsidize Larry Ellison's Tesla in NorCal.

        Of course, some believe that the poor don't pay their fair share, and that their tax burden should increase.

        I'm not one of those people.

        Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project.

        by PatriciaVa on Sun May 27, 2012 at 07:13:18 PM PDT

        [ Parent ]

    •  That isn't true (2+ / 0-)
      Recommended by:
      orlbucfan, Andrew M

      The $10k only means that Ellison gets to decrease his adjusted gross income by $10k. If he's in the 35% tax bracket, that means the gov't only received $3.5k less in taxes, not $10k less. It's dishonest to count the full face value of the tax break since the gov't would not receive an additional $10k otherwise.

      Of course, Larry Ellison isn't the only one eligible for the tax break. You and I are, too, and many of the people who take advantage of it might not be in the 35% tax bracket. (Although, admittedly, none of the struggling families in East LA will be taking advantage of it, in all likelihood.)

      The tax break isn't there to help Musk or Tesla. (It goes to a whole class of vehicles, not just one company.) It's there to try to get a whole new industry off the ground in this country. (And to improve gas mileage.) Those are legitimate public goods, and the gov't is rightly spending money to promote them.

      Assuming the loan is paid back, the cost to the gov't will be nowhere near $500M.

      The question is, should the gov't spend money to bolster industry, create jobs, improve gas mileage, and get new technology and a new class of vehicles off the ground?

      It isn't what we don't know that gives us trouble, it's what we know that ain't so. — Will Rogers

      by dconrad on Mon May 28, 2012 at 04:22:23 AM PDT

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