Iowa is about to adopt an additional “electric fuel excise tax” on July 1, meaning EVs in the state will now pay “fuel” taxes two different ways, whereas gas cars only pay one – and both of these taxes are higher than what a gas car pays.
Iowa double-taxes EVs, and each one is higher than taxes on gas
Iowa’s new EV fuel excise tax, in effect starting July 1, will apply a 2.6 cent tax per kilowatt-hour of electricity dispensed into an EV battery.
Thankfully, the new tax doesn’t apply to residences. But anyone charging at a public or commercial station will now have to pay two taxes where a gas car driver only pays one when they go to a gas station. The other tax is the state’s $130/year registration fee for EVs, which was explicitly intended to replace gas taxes for EVs.
Not only do EVs have to pay twice as many taxes as gas cars do, but each of these taxes is higher than the tax for an equivalent gas car.
At $130/year, an EV is taxed at about the rate of the average 35mpg car, given Iowa’s average 15k miles driven per year. While 35mpg is more than the average gas vehicle, it’s far less than the average efficiency of an EV – most of which are rated at over 100 mpge.
So this one tax is already more than what an EV would pay if it used gas. But on top of that, the 2.6c/kWh is also more than the taxes on gasoline usage. At current average Iowa gas prices of $3.70/gal, the state tax of 30c/gal represents a tax of about 8%. But at average Iowa electricity prices of 14c/kWh, 2.6 cents is an 18% tax, more than double the percentage tax on gasoline.
Per mile, these taxes come out to about .8 cents for EVs and 1.2 cents for gas cars, but remember both that gas cars are taxed based on fuel use not miles (and EVs are much more efficient, so thus should pay much less tax), and that EVs are already paying a tax just for existing.
Finally, there’s even a third source of taxes that some EV drivers pay. Iowa has a “local option” sales tax for utility costs, which means in some parts of the state, electricity is already taxed by an additional 1%. This is a small tax, but it means that EV drivers are instead paying three taxes to the state of Iowa, whereas gasoline users only pay one.
This has nothing to do with road damage
Governments have attempted to justify these abusive taxes by claiming that EVs are causing road funding shortfalls that need to be filled. But Iowa’s EVs cause virtually none of the road damage in the state.
Iowa has 4,596,501 gas vehicles registered as of 2022, and as of April of 2022, had 9,400 EVs registered.
If these EVs drive the same amount as the average Iowa driver, that means they’ll pay about $1.1 million in EV fuel excise tax per year collectively. But Iowa’s Department of Transportation has a $4 billion budget, meaning this new tax will represent ~.027% of its total. At Iowa average road construction costs, this would pay for somewhere around 30 lane-miles of road construction. Iowa currently has a total 235,460 lane-miles of road.
Meanwhile, a fully-loaded semi truck does roughly 10,000 times more damage than an average passenger vehicle. These trucks are driven more miles, too, with an average of around 45k miles per year. So if a $130 tax is reasonable for an average 15k-mile/yr EV, then a $3,900,000 yearly tax should be reasonable for a truck that does 30,000 times as much damage. If one of those numbers seems high, then both of them should.
Besides, less than 40% of Iowa’s roads are paid for by gas taxes, with the majority coming from other tax sources – which EV owners already pay their fair share for.
If we want to argue that “fairness” in paying for road damage is what’s important, then all vehicles should pay an equivalent tax based on weight and mileage regardless of motive power (and additional taxes for the amount of pollution their operation causes as well).
Until then, this is not an issue of fairness – it’s an issue of wealthy fossil lobbyists trying to disadvantage a superior powertrain choice while its numbers are still small and there are few people to complain, with the goal of continuing to choke you to death with the effects of their product.
What’s actually costing Iowans more? Pollution
What actually does have drastic costs for Iowans is pollution. The IMF has estimated that fossil fuels cost the US $649 billion in health and environmental costs per year, and if we assume those costs are distributed evenly across the US population, that would mean Iowa loses about $6 billion due to fossil fuel pollution per year.
And that doesn’t even account for the benefits of avoiding climate change, which will disproportionately affect the agriculture industry (Iowa’s most important industry) and where quick action could save the world tens of trillions of dollars.
But putting a dollar amount on those costs abstracts them and makes them feel less harmful. Those health costs aren’t being paid by your pocketbook, but by your lungs. It’s a shockingly big number, but it’s a number representing an even more shocking amount of misery foisted on you by the fossil fuel industry which has lobbied for these punitive taxes on its better competition.
The number obscures the misery of thousands or millions of Iowans with reduced quality of life, children whose possibilities will be limited by lifetime lung problems before they even get started with their lives, retirees who can’t enjoy their well-earned leisure due to visits to the doctor or being leashed to cumbersome medical devices, or the thousands per year whose lives are cut short from the poison we continue pumping into their lungs.
And with this law, Iowa is throwing its lot in with increasing the misery of its residents. Placing an abusive tax on a small number of those residents who’ve made a better choice and are being punished for it, making better choices less attractive, and harming its residents and its main industry in the process.
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Tesla will use Samsung for as a supplier for its self-driving computer’s next-gen hardware in a $16.5 billion deal, according to Tesla CEO Elon Musk.
But despite planning two generations ahead, the company still doesn’t have a solution to bring the promised full autonomy to hardware that it’s been promising that capability to since 2016.
Earlier today, Samsung announced a 22.8 trillion won ($16.5 billion) deal that would run through 2033. In that filing, Samsung did not name the customer, only that it is a “large global company”. Later, Bloomberg reported that the customer is Tesla, and Musk confirmed this on twitter. Then in his usual bravado, he stated that the deal is “likely much more than that.”
Samsung makes the chips for the self-driving computers in Tesla’s current vehicles, but the next generation will be made by TSMC, first in Taiwan and then later in Arizona. Then the next-next generation will be covered by this new Samsung deal.
The new deal is significant due to TSMC’s global dominance of chipmaking. Samsung has had significant unused capacity, so the Tesla deal is a big boost for the company’s chip foundry business.
Tesla has gone through several generations of chips, previous referred to as “HW,” standing for “hardware,” with a number indicating their generation. More recently, Tesla started referring to its chips with “AI” instead of “HW,” in order to incorporate the tech buzzword du jour.
Currently Tesla is on HW4/AI4, and TSMC will make HW5, then Samsung will make HW6 again.
These generations of hardware each get successively more capable, and can handle more data and thus theoretically become better at self-driving tasks.
Current Tesla HW4 vehicles cannot drive themselves, and are only capable of SAE level 2 operation, which requires an attentive driver behind the steering wheel (though Tesla’s solution does work better than most others). Tesla’s ‘Robotaxi’ system is currently operating in Austin without anyone in the driver’s seat, but has a “safety rider” who can take control of the vehicle, blurring the line somewhat on which SAE level it is operating at.
But what about HW3?
There’s a problem with the differentiation between these generations of hardware: ever since 2016, when Tesla was on version 2 of its hardware, it has promised full self-driving capability on all of its vehicles.
Tesla stated, at the time, that every single Tesla vehicle produced after that date had the hardware that would allow for full self-driving.
It eventually became apparent that HW2 would not be capable of full self-driving tasks, and Tesla upgraded to HW3, promising all HW2 customers that they would get a free upgrade to HW3 if they bought Tesla’s Full Self-Driving system, which has varied in price over time but once cost $15,000.
Now, with the change from HW3 to HW4, we’re seeing indications of a similar run-around.
We’ve already seen differing FSD software versions based on which hardware level vehicles have, with HW3 vehicles getting updates later than HW4 vehicles do. On last week’s Q2 earnings call, Tesla CFO Vaibhav Taneja said:
What we want to do is get unsupervised done on hardware four first. Once it’s done, then we’ll go back and look at what we need to do with the hardware three cars. Like I said, the focus is first to get unsupervised out and then we’ll go back and see what more work we need to do.
“Unsupervised” is Tesla’s new name for actual full self-driving, which would allow a vehicle to drive without the supervision of someone in the driver’s seat. This as opposed to “supervised FSD,” a phrase Tesla started using after about a decade of promising full self-driving without delivering it.
Here, Taneja said that HW3 cars will eventually get FSD, but Tesla hasn’t really figured out the path to that, and it’s focusing on new cars first, then will go back around to see what needs to happen.
Previously, Musk had stated that Tesla “will have to upgrade people’s hardware 3 computer,” but more recently it has become apparent that Tesla really doesn’t have a plan for that upgrade. And Taneja’s comments suggest that Tesla will still try to wedge FSD onto HW3, despite previously admitting that the system is not capable of it.
The existence of future HW5 and even HW6 chips also suggest that current systems are not capable of full self-driving. If HW4 is FSD-capable, then why would Tesla need two more generations of chip in the next two years in order to do the tasks that it promised all of its cars could do a full decade prior?
So, much more than having no solution for HW3 cars (or even HW2 cars, some of which have gotten free upgrades, but others who have been charged $1,000 to upgrade to a computer they already paid for), does this mean that Tesla is going to kick the can further down the road, and eventually have no solution for HW4 and HW5 either?
And, when will we know about these solutions? Tesla has sold millions of vehicles with the promise of self-driving which will seemingly need an upgrade at some point. And many of those vehicles are old enough, at this point, to be retired, despite spending up to $15,000 on a piece of software that has never been delivered to them.
An HW6/AI6 computer will surely have all sorts of new whizbang capabilities, but we were promised those capabilities years ago, and they’re still not delivered yet.
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Mark Kay’s iconic Pink Cadillac awards are driving into the future for 2025. The company’s first-ever electric Pink Cadillac OPTIQ made its debut during the Mary Kay annual Seminar in Charlotte this weekend, symbolizing a “recharged vision” for the future of the popular brand.
Pioneers in monetizing friendships female empowerment and entrepreneurship, the Pink Cadillac is considered one the most coveted symbols of achievement for Mary Kay sales reps, signifying not just great sales (GM Authorityreported that it took ~$102,000 in annual sales to qualify back in 2001), but also leadership, a history of mentoring others, and a sustained reputation of excellence among their peers.
The women you see behind the wheel of the Pink Cadillac are the real deal, in other words, and the big Caddy really does mean something to people in the know.
The iconic pink Cadillac was born in 1968 when Mary Kay Ash purchased a Cadillac Coupe De Ville from a Dallas dealership and promptly had it painted to match the pale pink Mary Kay lip and eye palette. General Motors later named the color Mary Kay Pink Pearl, and the shade is exclusive to Mary Kay.
“For decades, the Mary Kay pink Cadillac has symbolized accomplishment, aspiration, and the power of recognition,” said Ryan Rogers, Chief Executive Officer of Mary Kay. “With the introduction of the all-electric OPTIQ, we’re honoring that iconic legacy while driving into a transformative future—one grounded in our commitment to sustainability and dedication to inspiring and celebrating the achievements of our independent sales force for generations to come.”
Mary Kay announced its new Pink Cadillac with this video, below.
Same Legacy, New Energy
“The legacy continues with the new, all-electric (and still very pink) Cadillac Otiq [sic],” reads the official Mary Kay copy on YouTube. “The Optiq remains instantly recognizable with the pink pearl exterior, while modernizing with sleek, cutting-edge features. In addition, this vehicle showcases our commitment and dedication to sustainability by reducing our carbon footprint while continuing to inspire.”
Speaking of inspiration, I can’t hardly hear the words “Pink Cadillac” without thinking of the song. But, since “Bruce Springsteen” has become something of a trigger word for the MAGA snowflakes in the audience, I’ll post a different, but similarly great song about rose-tinted GM flagships from Dope Lemon. You can let me know what you think of it in the comments.
As ever, the Cadillac is not a “gift,” per se – but typically takes the form of a two year lease paid for by Mary Kay. No word yet on what the exact shape and form the OPTIQ deal will take.
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RBW, a British handcrafted electric car manufacturer, brought its cute little Roadster out to Santa Monica and invited us up for a drive.
RBW has built cars in the UK for a few years now, but is about to set up US manufacturing in Virginia. Along with that comes a version of its Roadster modified for the US market, and we got a sneak peek with a short drive in Santa Monica.
The RBW Roadster is a small, hand-built, retro-style EV, meant as a modern take on British classics. But it’s not an actual classic itself – it’s a newly-built vehicle, with a new body, modern safety features, and even some electronics, like CarPlay and Android Auto (but not much else – there’s no huge, cockpit-defining screen, just a 9″ one, with retro gauges in front of the driver. But it does have a backup camera!).
Our drive was short, just a quick trip up and down the most trafficky part of Pacific Coast Highway in Santa Monica, without much chance to really stretch the vehicle’s legs. So we can’t verify range or tell you how it handles on the limits, but we can tell you about the basic controls and feel of the vehicle.
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On a mostly smooth road, the car offered a comfortable ride dynamic. We didn’t get a sense of chassis noise because the top was down (which I surmised was an intentional effort by the company – I’ve used the same trick when showing off my car before).
The steering is tight and has a good weight to it, and the retro-style steering wheel felt great in my hands.
Of particular interest to me, as a long-time EV driver, is how the throttle pedal is tuned. Lots of EVs add some intentional delay or smoothing to throttle inputs, which ends up making the pedal feel mushy and indirect, reducing the control you have over the vehicle.
For reference, the cars I drive most often are the Tesla Roadster and Model 3, which both have excellent direct pedal feel.
And I’m happy to report that the RBW Roadster’s throttle pedal feels very similar to the cars I love to drive. The car feels quick, and responds exactly to what I want it to do, when I want it to do it. But it’s not excessively “punchy” like some of the more absurdly-powered EVs can be (like the Tesla Model S Plaid or the Macan Turbo S).
PCH with the top down is exactly where this car belongs. But maybe without the traffic.
It does not, however, have off-throttle regenerative braking, aka one-pedal driving. Pressing the brake pedal engages regen, but letting off the throttle lets you simply coast. I personally prefer one-pedal driving, but one consideration RBW had is that since the car does not have traction control, regenerative braking on the rear axle (where the motor is) could potentially present a safety issue on slippery roads. So, fair enough I guess, but I still do prefer one pedal.
Speaking of pedals, the brake pedal was placed quite far from the accelerator. This is a plus and a minus – a minus because it’s quite different from most vehicles these days, where the pedals are placed closer, for ease of reaching them with your right foot. A plus because higher separation might reduce the chance of “crossing the pedals” and accidentally pressing both with the same foot in an emergency situation, and because it enables left-foot braking, which is generally better for performance driving… in the hands of a trained driver, anyway.
That said, this isn’t exactly a performance car. It’s fun, it’s responsive, but it’s not powerful. The version we tested had a 0-60 time of only around 9 seconds, so it didn’t give you the “throw your head back” feeling that so many EVs on the road these days do. It’s responsive, but not fast.
RBW says the American version will have more motor power than the UK version, but it’s still trying to figure out exactly how to tune it. This should bring 0-60 times down by about a second. But we can’t help but think that it would be nice with even a little more power than that, which we think should be possible given the car’s 50kWh battery and ~2,900lb weight, specs that are similar to my similarly-sized Tesla Roadster (as you can see below – along with the GT version of the RBW, on the right).
Here’s an issue: all the specs we were given seem extremely fluid. While talking to the company, I got several different numbers for any given specification. It seems to me like the company is still figuring out exactly what changes it will make for its US models.
This is somewhat to be expected of a small, hand-built manufacturer, especially since buyers can ask for certain modifications or personalizations (seat height, for example, which is important in a small car like this). But it does make it tough to write an article about it.
Nevertheless, the car drives well, and RBW seems to have gotten a lot right about the dynamics of the vehicle. It executes well on its goal – a fun, small British-style roadster, a great weekend car for those who have the means.
As for the means, the RBW Roadster will start in the $140-150k range, so it’s not cheap. But if you’re looking for something like this, it’s just about the only game in town, and it’s a good execution of the feel of a nimble roadster for weekend cruising.
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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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