Electric vehicle subsidies would benefit the rich | EDITORIAL


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According to a recent Pew Research Center poll, 39% of Americans say they are “likely to consider” purchasing an electric car as their next vehicle. Will they go all the way? More than a decade after the first Tesla Roadsters were delivered to customers, electric vehicles represent only about 3% of auto sales in the United States.

President Joe Biden hopes to increase that number to 50% by 2030 with one predictable tactic: handing out freebies to buyers.

The massive and irresponsible $ 3.5 trillion Democratic spending proposal includes a provision to subsidize electric car sales by $ 12,500 per purchase. Electric vehicles are more expensive than traditional cars and trucks, so administration officials believe direct subsidies for consumers and de facto subsidies for automakers will solve the problem.

Cost is the number one reason Americans don’t buy electric vehicles, followed by concerns about a lack of charging stations and plugins not going far enough, according to a recent CBS News poll. meet their needs.

In response, Democrats and the administration are proposing to extend and expand the current tax credit for such purchases – much of which will end up in the accounts of wealthier Americans – while also subsidizing the creation of a national network of electric vehicle charging stations managed by the government. . Imagine if Washington owned all the gas stations in the country.

According to the bill in the House, the proposal excludes sedans costing over $ 55,000, SUVs with a sticker price over $ 69,000 and trucks over $ 74,000 – although those limits do not apply. apply only to a few vehicles. Meanwhile, couples earning up to $ 800,000 – and individuals up to $ 400,000 – would be eligible for handouts.

Rightly so, Democrats have used freebies as a way to line the pockets of their benefactors in Big Labor. Credit would increase, notes the Wall Street Journal, for electric vehicles produced in facilities “under a collective agreement negotiated by the unions.” It would also increase if the battery cells for a plug-in were made in the United States. As the Journal explains, Democrats want to help their friends United Auto Workers organize Tesla and foreign factories.

It is bad policy. We’ll set aside the rarely discussed reality that achieving a 50% market share for electric vehicles will require mining more minerals for battery production than America’s Democrats and Environmentalists will ever tolerate. If EVs are the wave of the future, let them compete rather than handout handouts to automakers and consumers to manipulate the market in the name of green decrees issued by central planners in the Biden administration.

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About Christopher Easley

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