Is this a bad thing? Is saying "we'll give you $5000 off your taxes if you buy a hybrid car" worse than saying "we'll throw you in jail unless you buy a hybrid car"? That's the alternative.
(You could argue that we don't need the government because humans are self-organizing and all that, but do we really want to go that far?)
Complicated taxes are a necessary evil. But it would be nice if the government just sent me a bill at the end of the year saying "oh hai, write us a check for $12345" and that was the end of it.
Is this a bad thing? Is saying "we'll give you $5000 off your taxes if you buy a hybrid car" worse than saying "we'll throw you in jail unless you buy a hybrid car"? That's the alternative.
If gas consumption is too high, why not increase the gas tax and let individuals figure out the best way to deal with it? Maybe for some people the best solution is to reduce their commute rather than buy a new car.
Is there any reason the government couldn't just put a direct $5,000 subsidy on hybrid cars? Or, even better, redesign its infrastructure policy to favor energy efficiency? (Considering all the things the federal government does to encourage cheap gasoline, a $5k tax credit for cars that use slightly less gasoline is nothing.)
The alternative is grants paid to hybrid car manufactures or car dealership or car buyer.
The only reason we don't use that far simpler system is government spending that looks like a "tax break" is some sort of fetish among the Republican party.
Edit: Democrats often do the same thing, just not to the same extent.
There are vastly more alternatives than that. I'm really surprised to see this post from you. You could leave income tax alone and just add in a big sales tax on non-hybrid cars, for example.
(You could argue that we don't need the government because humans are self-organizing and all that, but do we really want to go that far?)
Complicated taxes are a necessary evil. But it would be nice if the government just sent me a bill at the end of the year saying "oh hai, write us a check for $12345" and that was the end of it.