CASE statement urging Congress to end the costly and inequitable tax credit subsidy for electric vehicle purchases:
“If ever there were a government subsidy ripe for elimination it is the electric vehicle (EV) tax credit, enacted by Congress 10 years ago to absolutely no benefit to average consumers, our economy, or the environment. The only question is, will Congress – GOP members especially – stand up for consumers and taxpayers and finally pull the plug on the cord siphoning billions of dollars out of taxpayers’ pockets?
“They most certainly should. And we look especially to Senate Republicans to take a stand on behalf of consumers and serve as a firewall against this profligate giveaway.
“There is absolutely no justification for this ghastly and wasteful subsidy, which transfers money to those in a higher income bracket at the expense of lower-income taxpayers, while producing zero economic value. Over 70% of EV buyers earn more than $100,000, yet the tax credit is subsidized by average taxpayers who earn far less. At $7,000 a pop, this is akin to Congress handing out free ski vacations to the Swiss Alps for more affluent Americans at taxpayer expense.
“As the Manhattan Institute has pointed out, there is no benefit from the subsidy largely because gasoline powered cars are as fuel efficient as ever and getting even more so. Even if far-flung objectives of the credit’s supporters were realized, it would result in less than 1% reduction in atmospheric CO2, meaning this program produces no actual benefit. Further the EV credit doesn’t convert car buyers to electric, but instead pads the bank accounts of higher-income consumers who were already likely to purchase an EV even without the credit, making any benefit non-existent.
“The auto industry and environmental groups eager to see the first sprouts of the Green New Deal would love to see this taxpayer handout continue to subsidize 400,000 EVs at a cost to taxpayers of billions. This must stop. Those consumers who may want to purchase an electric vehicle are more than welcome to do so with their own money, they need not dip their hand into the pockets of average taxpayers to subsidize their high-cost vehicle preferences.”
