President Biden’s EV Tax Credit is a Tax Cut for the Rich

President Biden’s EV Tax Credit is a Tax Cut for the Rich

November 18, 2021

President Biden’s social spending package includes an electric vehicle tax credit that will serve as another tax cut for the rich. The Wall Street Journal reports:

The proposal being negotiated by House and Senate Democrats gives consumers the full $12,500 tax write-off only if they buy electric vehicles assembled by union workers using American-built batteries. Automobiles produced in nonunion factories would qualify for $4,500 less.

Biden is framing it as a part of his effort to save the planet, but in reality, it is just a kickback to the wealthy who can afford these vehicles and the auto companies making the electric vehicles who are giving money to top Biden advisers as we wrote in yesterday’s blog.

“After paying the lobbyist brother of a top White House aide nearly $200,000 this year, auto giant General Motors has won an official visit from the president to showcase its new electric vehicle factory.

Jeff Ricchetti, the brother of Biden’s longtime political consigliere Steve Ricchetti, has disclosed $160,000 in payments from General Motors since President Joe Biden took office to lobby the White House and Congress on electric vehicle tax incentives, according to his firm’s lobbying disclosure forms.” 

Cleary, that has paid off since Biden visited and toured the newly renovated GM electric-vehicle assembly plant Wednesday in Detroit with GM Chief Executive Mary Barra. WSJ reported:

He also briefly drove around a parking area in the GMC Hummer electric pickup truck, which is set to go on sale in coming weeks at a base price of around $100,000.

The average American cannot afford a $100,000 electric vehicle, and the class who can afford these vehicles are definitely not the ones who need tax cuts.

Senator Joe Manchin (D-WV) said he doesn’t support the extra tax credit. “To take $4,500 of taxpayers’ money and give it as an incentive is wrong in any condition,” he said last week. “It’s not who we are.”

Once again, we see how Biden’s ‘green agenda’ serves more as a way to get green dollars than push green policies.