Concerns over a potential flood of low-priced electric vehicles are growing, both within the Biden administration and in Congress. In a new working paper, Will Clayton Fellow in Trade and International Economics David A. Gantz discusses the current situation, along with remedial legal and practical measures likely to be applied.
Since the progressivity of the sales tax is difficult to directly measure, this paper introduces an indirect approach combining simulated household income with realizations of consumption behavior from survey data.