Republicans have proposed a bill to repeal the US EV tax credit in the Inflation Control Act, which would slow progress in US EV manufacturing and hand EV production control to China.
How the Inflation Control Act will benefit America’s health, economy, and manufacturing
The Inflation Control Act included hundreds of billions of dollars in climate spending, much of it earmarked for EV tax credits for both private and commercial vehicles. These credits are an extension and expansion of the $7,500 EV tax credit first introduced in 2008.
However, these credits are limited to 200,000 units per manufacturer, with some manufacturers reaching this limit and more manufacturers expected to reach this limit in the future. So the Inflation Control Act improved access to these credits, removed caps, and created a way to make them available upfront at the point of sale. This means low-income buyers can qualify for credit and get it right away without waiting. It’s for filing taxes.
However, we also limited credit in several important ways. That means ensuring domestic production of electric vehicles to qualify and setting limits on high-income buyers so that credits go to those who need them, not those who don’t. t.
It also added a $4,000 used EV tax credit, which is limited to lower-income households.
There are ways around some of these restrictions, and some have been eased to allow the industry to catch up. But despite these restrictions, the country is fueling a renaissance in auto manufacturing, with many manufacturers announcing investments in new factories in the United States.
In fact, since President Biden launched his EV push, $210 billion has been invested in new or expanded factory projects, creating 250,000 EV jobs and more on the way. is.
These efforts will help make the U.S. an EV manufacturing powerhouse. The US has already made considerable progress in EV production, primarily led by Tesla. However, as China’s EV production and demand is increasing rapidly and automakers are struggling in the face of it, the government has made it clear that it is committed to building this industry for the long term. There is a need to.
The IRA also represents the largest climate change commitment made by any country in the world in dollar terms. Hundreds of billions of dollars have been allocated primarily to EV-related tax credits, but also to many other climate change programs, an amount unmatched by any other country. As an added bonus, this bill actually brings in more revenue than it costs through tax reforms that target tax fraud on wealthy corporations and individuals.
Republicans are lying about the bill’s effectiveness.
So it’s no wonder that Republicans, who seem to actively oppose anything that would benefit American manufacturing or the environment in which Americans live, would introduce legislation that would eliminate many of the benefits of the Anti-Inflation Act. do not have.
This new law is aptly called the “Elite” Vehicle Act (admittedly named after the Republican Party) elite (aimed at profiting at the expense of fossil fuel providers) aims to eliminate the Clean Vehicle Credit for new cars, used cars, and commercial electric vehicles.
The legislation was introduced by Republican Sen. John Barrasso of Wyoming, who received $526,425 from the oil and gas industry this Senate election cycle. Not only that, but all of Wyoming’s major industries are tied to oil, and the claim that this law is intended to do anything more than benefit an industry that kills millions of people a year is a lie.
Proponents of the law argue that IRA credits (particularly second-hand EV credits are limited to low-income earners) are a benefit to the wealthy (who don’t qualify) and that the credits allow Chinese EVs to enter the United States. is allowed (they actually say it explicitly not allowed (according to the domestic manufacturing regulations above).
What is noteworthy is the act I don’t We will do anything to eliminate the $760 billion in subsidies that polluting industries receive each year in the United States. This could be achieved by making polluters pay for the pollution they cause. If eliminating subsidies is the main concern of this law, that is a pretty big goal that it ignores. Because, understandably, the fossil fuel industry doesn’t like having its free license to harm Americans’ health taken away.
The real effect of reducing these credits would be to lower the price of EVs for Americans, make those same Americans even worse off due to environmental pollution from the industries that bribe Barrasso, and make the U.S. EV manufacturing and consumer uptake will be hampered. This has the effect of handing over leadership in global EV manufacturing to China.
How will Chinese autos benefit and the U.S. suffer from the elimination of EV credits?
Currently, both EV manufacturing and consumer demand in China are rapidly increasing, and China is rapidly increasing exports of EVs to overseas markets, especially Europe at this time.
But Chinese companies want to sell EVs in the U.S., and they probably want the government to add $7,500 to the price of U.S.-made EVs, which would make it easier for U.S. consumers to buy Chinese-made EVs. It will only make pockets more competitive. Barrasso’s bill would do just that, making China’s EVs more competitive and the U.S. auto industry less competitive.
And while EVs bring benefits to local air quality, which is no surprise and has already been seen in areas of high penetration, reducing EV adoption also makes Americans sicker. , America’s hospitals will become even more full.
Mr. Barrasso claims that this bill would do the opposite of what it actually does, but it is difficult to believe that anyone would be ignorant enough to believe that it would actually have the effect he claims. . We don’t think even he thinks so – we think he’s just playing politics and saying whatever pleases his fossil overlords. Masu.
In other words, the author of this law, John Barrasso, is lying to protect the industry that bribes him.
So far, the legislation has only been introduced in the Senate, but has not gone out of committee or been voted on. The group is sponsored by 19 Republican senators, many from states with large oil industry presences. If somehow passed, the bill would almost certainly be vetoed by President Biden, so it is unlikely that the bill would pass under the current administration (though it could change in November). , please keep this in mind when filling out your ballot).
But even if it doesn’t become law, it serves as a way for Republicans to demonstrate their intent to sacrifice money, harm health, and hand over the keys to the auto industry’s future to the government. A country that the United States considers a major geopolitical rival.
FTC: We use automated affiliate links that generate income. more.
